NYC Homes Harder To Afford

…only part of the problem. Jonathan Miller, an appraiser at StreetMatrix, told The Post that a shortage of homes for sale is preventing the market from correcting in the way it normally would when borrowing costs rise. “ When we think about affordability, I think the influence of inadequate inventory is more powerful on the affordability topic than actual rates themselves, ” Miller said. Typically, higher mortgage rates would reduce demand, increase inventory and eventually put downward pressure on prices. That has not happened to the same extent in New York. “Mortgage rates are over 7%,…

…elevated. Jessica Peters of Douglas Elliman said buyers were being “squeezed from both sides”, as borrowing costs remained high while prices held firm, particularly in sought-after neighbourhoods with limited supply. “ New Yorkers also have to account for maintenance or common charges, taxes and closing costs, so the monthly carrying cost can become substantial very quickly, ” Peters said. Rather than abandoning the market altogether, buyers are adjusting their expectations by: - Increasing down payments where possible; - Lowering their overall budgets; - Expanding searches into different…

…those dependent on mortgages. Donald Brennan of Engel & Völkers New York City, Brownstone Brooklyn, North Fork and Hoboken said buyers currently working with advisers at his New York City office were all paying cash. “ The people that are still buying are the cash buyers, ” Brennan said. For those hoping that lower mortgage rates will eventually solve the problem, however, analysts warn that cheaper borrowing alone may not restore affordability. If rates fall, a fresh wave of buyers…