In Yonkers, it is crucial for home sellers to recognize the changing attitudes towards permanent housing over temporary or rental options. This shift has led to a heightened competition among buyers in the real estate market.
Shifting Labor Market
One contributing factor is the trend of remote work models, which is gaining increased acceptance and implementation of flexible work arrangements by companies of all sizes. As businesses adapt to the changing landscape of work, more and more employers are offering employees the option to work from home or in a remote location, thereby reducing the need for a traditional office space.
This shift towards remote work models has prompted individuals to reconsider their housing situations, leading them to seek out long-term solutions that better suit their new work arrangements. In response to this demand, landlords and property owners are increasingly offering flexible lease options and amenities catered towards remote workers, such as high-speed internet access and dedicated workspace areas within rental properties. Overall, the rising popularity of remote work models is not only reshaping the way individuals work but also influencing the housing decisions they make in order to accommodate this new work style.
Furthermore, affluent investors are adjusting their investment strategies to take advantage of market opportunities, resulting in an earlier acquisition of second homes for retirement purposes. These factors are all playing a role in creating a shortage of available properties in the Yonkers real estate market.
Riding the Wave
Since 2008, there has been a consistent pattern of reduced new housing construction, which has resulted in a surplus of completed units failing to keep pace with the heightened demand post-pandemic. Low interest rates and a influx of new buyers to the market have created a scenario where individuals previously unable to afford housing are now actively purchasing. Furthermore, alterations in federal tax regulations have caused buyers from high-tax states to relocate, as they are no longer able to deduct their property taxes.
In October 2020, the National Association of Realtors released a report revealing a historically low inventory of homes for sale. At the current rate of listings, the available inventory would only last slightly over two months. Particularly concerning is the decrease in sellers listing their homes, with a notable slowdown in those looking to upgrade from starter homes. Many homeowners are choosing to stay put and wait for market conditions to stabilize before considering a move. These factors have created a highly favorable seller’s market, characterized by high demand and limited housing supply leading to significant price increases. Home sellers in Yonkers should take note of these trends in the current real estate market landscape.
The Trouble With Bidding Wars
In Yonkers, home sellers should be cautious when dealing with bidding wars in a seller’s market. It is important to note that buyers may submit bids that exceed the appraised value of the home, but fall short of the typical 80 percent loan to value ratio required by mortgage lenders. This can result in potential loss of interested buyers who cannot afford the increased monthly payments, higher principal, and additional mortgage insurance costs associated with a winning bid. Additionally, these buyers may not have the funds available to cover any shortfall between the appraised value and the final purchase price.
What Goes Up Must Come Down
It is essential to acknowledge that all positive economic trends ultimately reach a conclusion. Even before the onset of the pandemic, there was a steady increase in housing prices, a trend that has persisted with prices continuing to escalate. The surge in listing prices has made it challenging for many first-time homebuyers to afford the average home in the current market. Sellers in the real estate market of Yonkers need to be aware that this continuous upward trajectory in prices is not sustainable, and there is a risk of a potential market downturn. There are indications that foreclosures, currently paused, may rise among low-income households. Currently, there are around 2.75 million mortgages protected under the CARES Act, with approximately 10% of FHA-backed mortgages falling behind on payments by more than three months.
Avoiding the Risks of Selling
It is important to be mindful of the potential consequences of holding onto a property for too long, as this could mean missing out on the optimal time to sell when the market is at its peak. Many individuals may be hesitant to pursue traditional listing methods, as they may feel uncomfortable meeting with unfamiliar parties for negotiations. This apprehension has been exacerbated by the current pandemic, with sellers wary of allowing potentially unwell buyers into their homes for showings. The heightened levels of stress during this time, compounded by the challenges of remote schooling and working from home, can make the idea of selling a home daunting for many. For homeowners in Yonkers, it is worth noting that there is an alternative option available – selling directly to a reputable buyer like Astor Lane Homes in the local real estate market.
If you are seeking information about the current real estate market in Yonkers, consider reaching out to Astor Lane Homes. Our team is committed to offering professional guidance and support to individuals looking to sell their homes in Yonkers. We provide transparent pricing, clear contracts, and efficient closing services. No matter what your situation you find yourself in, our experience team at Astor Lane Homes can help.
Don’t delay in selling your home any longer – Astor Lane Homes is ready to assist you at every stage of the process. Reach out to us today via email or phone at (914) 266-0055 to begin your selling journey.