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Real Estate Sales in NYC Suburbs Down Due to Lack of Inventory

According to a recent Crain’s article, the suburbs of New York City have seen a drop in the number of people purchasing real estate for several months in a row. However, this drop in property sales has nothing to do with a lack of demand. Rather, demand has substantially outpaced the number of properties currently available for sale, leaving real estate sellers with relatively little inventory to sell.

The State of the Real Estate Market

    Right now, real estate sales in Greenwich in Connecticut have fallen for the fourth straight month in a row. A similar picture can be seen in Westchester County and Long Island, where property sales are down for the fifth straight month in a row. For the Hamptons, the trend has been going on even longer, which has seen six continuous months of falling property sales.

The Reason For Declining Sales

    The reason for the decline in real estate sales is actually quite simple: there simply are not enough properties available for people to buy. In fact, demand for properties has only increased during the period where sales have fallen. Much of this lack of supply is simply due to people not currently wanting to sell their properties, but it can also be attributed partly to supply chain disruptions that have made it harder to get building materials to construct new properties.

What This Means For Sellers

    With fewer property owners putting their real estate up for sale, and a lack of construction to make up the difference, every parcel of real estate is now selling at a premium.  For anyone looking to sell their property, they can likely demand much higher prices than they might have just one year ago, or even three to four months ago. That said, if trends continue as they have, it may benefit you not to rush to sell, as it could take time for the shortage of inventory to be resolved.

What This Means for Buyers

    Anyone looking to purchase real estate, meanwhile, may be in a difficult spot. The lack of available inventory means anyone looking for properties to buy will have substantial competition, which can increase the price due to increased bidding. With current trends going as they are, it may be worthwhile to stay out of the market until there are more properties on the market, although it is difficult to say when that might be.

    If you are an attorney assisting a client with a real estate transaction, you should contact the title insurers at Habitat Abstract. Our experienced staff will assist you with obtaining a title insurance policy that protects your clients and prevents unforeseen issues related to a defective title. Contact us at 1-888-99-TITLE (1-888-998-4853) or visit our contact page for more information.