Closing Conducted by: | Attorneys |
Conveyance: | Bargain-and-Sale Deed |
Primary Foreclosure Method: | Judicial |
Process Period: | 4 - 8 months |
Notice of Sale: | Court |
Redemption Period: | None |
Income Tax: | 4.0% - 8.82% |
Corporate Tax: | 7.10% |
Sales Tax: | 4.00% |
Estate Tax: | 3.06% - 16% |
Inheritance Tax: | No |
Median Property Tax: | 1.23% |
Property Taxes by County: | http://www.tax-rates.org/new_york/property-tax#Counties |
Closing Cost: | $2,892.00 |
Transfer Fee: | Mortgage tax 1.0%; Mortgage NY City 1% - 1.75%; Realty transfer NY City 1% - 2.625% |
Origination Fee: | $2,109.00 |
Median Home Value: $328,677
1-Year Appreciation Rate: +2.3%
Median Home Value (1-Year Forecast): -2.2%
Median Rent Price: $3,200
Price-To-Rent Ratio: 8.5
Average Days On Market (NYSAR): 76
New Listings Year-Over-Year (NYSAR): +17.0%
Months Of Supply Year-Over-Year (NYSAR): -15.8%
Unemployment Rate: 15.9% (latest estimate by the Bureau Of Labor Statistics)
Population: 19,453,561 (latest estimate by the U.S. Census Bureau)
Median Household Income: $65,323 (latest estimate by the U.S. Census Bureau)
Percentage Of Vacant Homes: 10.50%
Foreclosure Rate: 1 in every 17,641 (0.5%)
The Great Recession was responsible for tanking median home values on a national level, and New York was certainly no exception. As recently as 2012, in fact, New York’s median home value bottomed out around $253,000. It is worth noting, however, that was the lowest the state average would drop. Nearly halfway through 2012 home prices started to appreciate, and they haven’t looked back since.
Thanks to nationwide improvements in the economy, growing optimism and a lack of available inventory, prices in New York have enjoyed nearly a decade’s worth of growth. As a result, today’s median home value is somewhere in the neighborhood of $328,677, or 29.9% higher than where it was at the bottom of the last recession.
With an appreciation rate bordering on thirty percent, New York residents have had every reason to be optimistic over the recovery. However, it’s important to look at New York home values within a national context. Despite nearly a decade’s worth of appreciation, real estate in New York failed to keep pace with national trends. From the halfway point of 2012 (when the state of New York saw its median home value hit rock bottom) to today, the median home value in the United States appreciated 52.2%. That’s not necessarily an indictment on New York, but rather more indicative of how far the national real estate market had to go.
The New York real estate market appreciated at a slower rate than the national average over the last 12 months. Whereas the state of New York increased by 2.3% in the last year, the national real estate market was the beneficiary of a 4.1% increase. Moving forward, it appears as if New York will continue to lag behind the national average. Thanks largely, in part, to the impact of the Coronavirus on New York City, The Empire State is expected to have a harder time returning to pre-pandemic market conditions. Statewide, prices are expected to drop a modest 2.2%. The median home value in the United States is only expected to dip 1.5%.
The difference may be attributed to New York's high unemployment levels, as the lack of consumer confidence may have detracted from the buyer pool and lowered demand. While New York's spike in unemployment in April was on par with the national average, the state's unemployment rate has actually increased since then. National unemployment, on the other hand, has dropped 4.5% since the spike. With more economic uncertainty in New York than on a national level, it's reasonable to assume New York will need to make up more ground.
Fortunately, the ill effects brought about by the pandemic aren't expected to last forever. The setbacks New York experienced are only going to be temporary. The latest dip in prices probably won't last much longer, as the state's 4.8 months of available inventory have already started to stir up competition once again. The median sales price is already up 4.4% year-to-date, and there's no reason to think it won't continue rising as we distance ourselves further from the onset of the pandemic.
The New York real estate market experienced a significant setback; there is no denying that. However, the pandemic may have created a window of opportunity for those who were tired of seeing prices march higher each year. With prices down slightly from their 2020 highs, investors who get in now may benefit from appreciation by year's end.
Chenango: (1 in every 5,054)
Orange: (1 in every 5,896)
Nassau: (1 in every 7,360)
Putnam: (1 in every 7,716)
Suffolk: (1 in every 8,089)
Tax Lien or Deed: Tax Lien state
Interest Rate: 14% in counties that have sales
Redemption Period: 3 years
Interest rates on traditional loans are historically low
Years of cash flow can easily justify today’s higher acquisition costs
The price-to-rent ratio suggests high home prices will increase rental demand
Buffalo should see an influx of buyers: With a median home value of $105,695, the Buffalo real estate market is priced well below the New York average. In fact, real estate in Buffalo is approximately one-third the price of the state average. As a result, it’s reasonable to assume Buffalo will see an influx of buyers in the coming year, most of whom are looking to escape the higher prices associated with New York City and White Plains. Added interest has already helped homes in Buffalo appreciate more than the state average in the last year, and it looks like Buffalo will continue the trend for at least another year. Now may be a better time than ever to consider investing in Buffalo real estate.
New York appreciation will trail national trends: The median home value in New York is about $80,000 more than the national average. Consequently, real estate in New York has very little room for further increases. As a result, it’s safe to assume the national real estate market will appreciate at a faster pace over the next 12 months. That’s not to say this is a new trend, but rather that the difference will extend into 2020, and beyond.
More people will move to the suburbs: The Coronavirus has forced many people to work from home for the better part of 2020, which is starting to reduce the dependance on living close to an office. As a result, more people are already starting to leave big cities in search of lower-priced homes in the suburbs. The exodus will most likely create a void in cities like NEewYork, where rental prices will probably drop and vacancies will probably rise. The shift could mean a lot more activity for investors in secondary cities.