The signs of a housing slowdown are starting to reach across New York City and the metro area. For instance, a newBloomberg article talks about a home in Long Island that recently sat idly on the market until its taxes and its price were both moved lower. As we have already written about earlier this year, buyers in places like Connecticut are looking to rent houses – sometimes even for $10,000 a month – before buying them. Real estate brokers in the metro area and places like Hoboken are noticing business slow down.
Greg Heym, chief economist of Terra Holdings, told Bloomberg:
“Brokers ask me, ‘When is it going to get better? ‘Better’ for this market, in this area, is lower prices.”
It doesn’t matter whether it’s high-rises in the city or homes in the suburbs: years of price appreciation, combined with caps on property tax deductions and rising rates are all guiding prices lower and slowing the market down.