New York real estate continues to be one of the biggest sellers.
The average price for an average property in the city rose 6.3% in 2017, according to data from Zillow.
That’s an increase of 1.5% over the same period last year.
The median price for a new home in New York is $1.8 million, according the Zillows, which is about $500,000 more than the year before.
“Real estate is the most expensive asset in the economy, and there’s a lot of speculation that we’re going to have an economic recovery,” says Jason Williams, chief economist at Zillower.
But Williams says that sentiment hasn’t translated into an uptick in home sales.
He says prices are still below the level of a decade ago, and he predicts the market will remain subdued for at least another two years.
“There’s no indication that people are starting to sell,” Williams says.
“They’re still buying.
We’re just not seeing the big sellers.
We still have some supply out there.”
In other words, people are willing to buy when they see the value of a home in the market.
“You don’t want to see a lot more people buy a house than you’re seeing in the real estate,” says Paul Regan, managing director of real estate analytics firm Regan & Associates.
In other cities, such as San Francisco, home prices are rising faster than the economy.
Regan says the pace of home price growth in the Bay Area has been slower than other parts of the country, and that’s probably due in part to a combination of supply constraints and a lack of inventory.
In California, the median price of a new house in the Golden State increased 4.1% from the previous year, according for Zillotower.
That compares with a 3.3 percent increase in San Francisco.
“If you were to say you are going to build 20,000 new homes per year, that’s a pretty big number, but you don’t get to do that with only 10,000 homes in a year,” says Regan.
He adds that the growth in home prices in California has been uneven, with the state’s economy continuing to slow and housing stock not being as plentiful as in other parts.
“People aren’t buying in California because they’re being forced to,” Regan said.
“A lot of people are buying because they have the opportunity, but also because the price is going up.”
A home that’s not available for sale isn’t necessarily a great place to live.
“That’s a big reason people are staying put,” Williams said.
In some cases, people aren’t just staying put.
The number of home sales in the Greater New York area is up over the last five years, according Regan’s data.
The metro area experienced more than 1 million new homes sales in 2017 and an average of 5,800 new home sales per month.
The national average is 1,200 sales per week.
In fact, Zillovision, a real estate search tool, reports that home sales are up at the highest rate of any metropolitan area, with a nationwide average of 8,200 new homes sold per month in 2017.
“New York City is really good at finding good-quality homes, but we haven’t been as good at getting more affordable homes in the greater New York region,” Reggino says.
In addition to home sales, Zilow reports that prices are up in many other major cities.
In New York, prices are at the top of the list.
Regginos analysis of Zillobiz shows that prices in Manhattan have jumped 8.5%, up from an average price of $845,000 in 2016.
In Brooklyn, prices were up by about 20% from an earlier period.
In Philadelphia, prices jumped 15.7% in the same time frame.
In San Francisco and Los Angeles, prices have risen by about 10% each.
“The question is, will people be able to afford to buy a home?” says Reggin.
“We haven’t seen the same kind of supply out in the suburbs that we’ve seen out in urban areas.
If there are a lot fewer people on the street, then people are going not to be able afford to sell.”
ReggINO’s research shows that in some cities, realtors are seeing more buyers.
“In some areas, there’s really been a real shift from sales to foreclosures,” Reghino says, which he attributes to the foreclosure crisis that began in 2008.
“It’s really difficult to find buyers right now.
You have all these people trying to get into the market and selling houses for prices they can’t afford.
It’s really not an affordable market for people.”
Regan agrees that the foreclosure rate is high.
“I don’t think it’s going to go down, and the numbers are probably going to