NEW YORK - The Ithaca real estate market is growing, but new developments negatively impact the city. Many landlords target wealthier tenants with outsized rent rates, resulting in substandard housing. Meanwhile, many less affluent students are left with few options for affordable living. The city has also witnessed a high turnover rate in local businesses, which further exacerbates the city's affordability issues.
As a result, it is vital to know the housing market in the area to invest in real estate. There are several factors to consider when making a real estate investment in Ithaca, including the housing market and the price of homes. It is important to remember that prices in upstate New York can fluctuate significantly from one day to the next. Check the housing index and projected house prices if you're buying a home in this area.
According to Fannie Mae, the average 30-year mortgage rate will rise to 3.5% in 2023. That will be a significant improvement for buyers but may cause some pessimism among investors. It's important to remember that the real estate market in 2021 was very hot. Prices soared above the asking price, and inventory was low. In addition, buyers had to compete with each other in frenzied bidding wars. The year-over-year pace of appreciation was at its highest level in the past four decades.
The current housing market is not sustainable, and it's vulnerable to affordability crushing and rising mortgage rates. Despite this, the housing market is expected to plateau and grow modestly in 2023, according to Zillow. Although this forecast is more likely to be accurate than others, the current situation does not appear to warrant any alarm.
"The Gem" is a new urban infill development that would replace a three-bedroom rental home. Visum bought the house last December for $1.635 million and plans to build ten new apartments. Visum Vice-President Patrick Braga readily said the project would have as many as 27 bedrooms but did not apply the usual coyness often associated with Ithaca developers.
Rising inflation will also affect the housing market. This will lead to lower consumer spending and a possible recession. Moreover, a new president could create uncertainty in the housing market, affecting housing prices. Therefore, buying a property in an election year is best when the economic outlook is bright.
As for the current housing market, home prices are expected to decrease slightly. The average home price in April was $391,200, while the median home price for a newly constructed property was $450,600. The declining demand for housing may increase housing inventories, which should improve prices for buyers.
