The housing market of New York continues to improve as third quarter figures for 2012 show another sales growth. This marks the fifth quarter in a row that sales of residential properties in the state have trended up.
Prices are also stabilizing, demonstrating that the region's home sector is starting to climb from the bottom. Industry analysts expect the positive trend to continue for the rest of 2012 and onto the coming few years.
Solid Performance from NY Housing
In the first nine months of 2012, sales of residential properties in New York have gone up by more than 6% compared with the same period in 2011. Pending sales – a reliable gauge of future sales – are also up over the same period by 15%. Median prices, on the other hand, rose by 4.4% during the third quarter compared with the same 2011 quarter.
Realtors believe that strong housing sales in the state are driven by record low mortgage rates, which have benefitted from the Fed's mortgage-buying activities. In addition, prices of homes have remained relatively affordable, despite an increase in median rate year-on-year.
Rise in Foreclosure Starts
Realtors are optimistic that prices will hold, despite the anticipated entry of more foreclosures in the market as September 2012 figures show that New York is one of the states that recorded a rise in foreclosure starts year-on-year. Analysts explain that this is because New York is a judicial state and courts are required to approve foreclosures, which means that the process is slower and backlog is to be expected.
Lenders are starting to catch up with the backlog, analysts further explained. They believe however, that the New York market has recovered enough to accommodate any potential increase in supply and that there are enough buyers to absorb distressed properties that may be added in the coming months.
Factors that Help Sell a Home
Meanwhile, the home of Robert F. Kennedy Jr. in Bedford has been put up for sale for a reported listing price of $3.9 million. Considering that the property has 14 rooms, a swimming pool and eco-friendly features, realtors expect offers to flood in.
However, some have noted that the recent controversies surrounding the death of Kennedy's ex-wife, Mary, may put off some would-be buyers. Housing experts though, have asserted that this will not be the case. They claim that serious buyers will only focus on whether the deal is good or not and most will not be too bothered with what happened in the property in the past.
And with its features and its location, the Bedford home is considered a steal by most realtors. Moreover, the price is considered reasonable, particularly for a property that has been refurbished just recently (2008).
Real estate agents believe that sellers who knew how to price their properties right will always get ahead of the competition, particularly now that buyers have become wiser about residential properties. Location, price and features will always trump any history associated with a residential property, agents have argued, especially in New York where most homes have one story or another behind it.