By Saleem Mubarak
New York’s real estate market is under pressure like never before, as soaring prices, scarce inventory, and high interest rates are compelling buyers and investors to review their business strategies.
From townhomes in Brooklyn to suburban moves in New Jersey, the landscape of city’s housing is shifting fast, and artificial intelligence might be the next game-changer for the real estate sector of New York.
The NYC Empires talked to Stephan Brisard, a real estate professional who is keeping an eye on the changing trends of the market, to get his insights on the latest developments.
Inventory Shortages and Market Challenges
He said that one of the biggest issues right now that investors and real estate professionals are facing is a lack of inventory. Over the past couple of years, he said that there hasn’t been enough property on the market.
Owing to this, he said that both buyers and professionals are feeling the pressure, as interest rates are high, forcing many people to stay put.
He said that the situation is the same in the rental market in New York City, as the rent prices are high and people prefer to stay in their current places rather than risk moving.
“Everything is going up in price because of inflation and housing inventory is part of that problem,” he remarked.
High Interest Rates: Making Things Harder
He said that high interest rates are badly affecting the market too. Investors and professionals want to put money into New York City real estate, but borrowing costs are skyrocketing, creating issues for them, he explained.
Brisard noted that interest rates are also impacting mortgages and due to this situation, everyone has to plan carefully. But even with high interest rates, he said, the main issue remains low inventory. If there were more options, people could handle slightly higher rates more easily, he claimed.
What Buyers Are Looking For
When asked what types of properties buyers are interested in these days, he said that many want more space. People want a home that can grow with them– from living alone to moving in with a partner and eventually starting a family.
He said that townhomes are very popular, particularly in Brooklyn, as people are moving there even from Manhattan.
“This is happening as they get more space and better value,” he added.
He also mentioned that some New Yorkers are moving to New Jersey where suburban life offers more room, front yards, backyards, and larger homes.
In New York City, he said, even townhomes have limited outdoor space. This trend, he claimed, is shaping what buyers are searching for today.
Changes in the New York Real Estate Market
To a question about the biggest change over the past few years, Brisard said that one major shift has been in the laws.
“There have been many lawsuits and legal battles that are reshaping how business is done for both professionals and consumers,” he noted.
By giving an example, he added that Compass is involved in a legal conflict with Zillow over antitrust matters.
He said that this battle could alter the current use of online listings among agents and consumers. However, despite the legal fight, he indicated that Zillow will continue to be a useful source of real estate inventory.
The Role of Artificial Intelligence
When asked if he thinks artificial intelligence will change the working style of the market, he said that yes, it will definitely change current trends. However, he added that it depends on how people use it.
“AI can help you grow your business and understand the market better. But if you ignore its importance, it can leave you behind.
Those who use it wisely will gain an advantage. Overall, AI is expected to bring more efficiency to the industry,” he added.
Author Profile
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The writer is a real estate journalist specializing in all types of New York City properties, including luxury residences, commercial spaces, and homes.
He also writes humorous articles about real estate, investors, and realtors.
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