After more than 15 years as a licensed real estate seller in New York State, I have witnessed a variety of different real estate markets including: Sellers’ Market; Buyers Market; and neutrals/balanced. I’ve seen high mortgage rates, low mortgage rates, and everything in between, it seems. The rules of supply and demand have fluctuated dramatically from time to time! In recent times, a combination of factors, especially since the start of this horrible pandemic, have included: record/historic low interest rates; limited inventory of homes for sale and changing priorities of potential and qualified buyers (in terms of location, style, size, priorities/perceptions, etc.). However, the reality is that, at some point, the market will likely change again and with that in mind, this article will attempt to briefly consider, examine, review and discuss 6 probable, intermediate – term, changing, real estate trends.

1. Gradually rising mortgage interest rates: These records – lows, rates, will eventually move up. This will probably happen gradually, depending on general interest rates, which are largely determined by the policies and actions of the Federal Reserve Bank. Extremely low rates make home buying more desirable because since most are reliant on a mortgage, it means they can pay higher prices, etc. The current low rates are largely due to perceived weaknesses in the broader economy. If and when general economic conditions appear to be improving, and/or there are improving inflationary trends and tensions, a rate hike is most likely.

two. Return to a more balanced market: We will likely see more of a balance between the number of buyers and sellers in the interim future. This will probably take some time, because we are living in strange and unpredictable times! If/when more homeowners decide to sell their homes, the change will begin!

3. Changes, desirable trends and priorities: Currently, due to the impacts and ramifications of this pandemic and related public health restrictions, many buyers seem to be leaving the city in search of a less dense set of conditions. Some priorities seem to include: more interior space; different interior features/priorities; enough land, to be comfortable; and other amenities, etc.

Four. Power sources/heating: Many are looking to more sustainable energy sources to meet their heating and electrical services. needs. We can probably expect more use of solar panels, geothermal, and more energy efficiency, etc.

5. Modification of tax considerations: When the 2017 tax reform law was enacted, it included, SALT restrictions, which limited the ability to deduct state and local taxes from federal income tax returns. This can, at some point, reduce the attractiveness of the houses, in certain areas with higher taxes.

6. Different model for real estate taxes: Certain localities have significantly higher real estate taxes than others! At some point, this can negatively affect how desirable homeownership can be in some regions.

Since, for most, the value of your home represents your biggest asset, doesn’t it make sense to pay close attention to anything that might affect the value of your home? Will you be a more knowledgeable and prepared homebuyer/owner?