The Hudson Valley Real Estate Market is Rebounding
It was a tough first quarter for the Hudson Valley Real Estate market – and the real estate market nationwide, as the pandemic put the majority of the economy on hold, while everyone sat tight in response to the large economic and socio-economic effects felt throughout the country due to COVID-19. While we are slowly emerging from quarantine, many people are shifting their lifestyles to reflect this new way of life.
As companies continue to have staff work remotely, many have chosen to take this opportunity to move out from more urban areas, and into less densely populated areas. The appeal of living farther outside of New York City can now become a reality for many as telecommuting has shifted to become a more permanent change after the pandemic. This trend, as well as hope for an improving economy, has allowed the Real Estate Market to see record sales as we enter the summer months, and REALTORS® across the country are forecasting that this trend will continue on for some time.
The NAR’s Pending Home Sales Index, a forward looking indicator based on contract signings, jumped 44.3% to a reading of 99.6 this past May, the highest month over month in the index’s history since January 2001. Given this positive trend, 43% of REALTORS® expect stronger homebuyer traffic over the next three months compared to this time last year.
Housing prices are also expected to remain stable, as well as increase in areas where demand is high and supply is low. Areas such as Upstate New York, have seen a drastic increase in home sales and rentals, due to people wanting to relocate from New York City for the foreseeable future. As people look to more rural areas for health reasons, in addition to the numerous other benefits, we expect to see these trends continue. With the continuation of low mortgage rates, and job creation back on the rise, homeowning is now less expensive than most rentals. Those who were waiting are now even more than ever incentivized to leave big cities for smaller cities and rural towns and that is good news for Ulster County.
In a recent New York Times article highlighting the surge of home buying in the Catskills, the market has seen more buying activity than ever before, due to not enough inventory to supply the current demand of New Yorkers wanting to move out of the city. This has contributed to the rebound of the Hudson Valley Real Estate market. Properties are seeing multiple above asking offers, and bidding war frenzies seem to be the new normal. 416 Ulster County properties were pending or under contract just in May, with closing dates likely in July or August. This is well over the 238 houses that closed in Ulster County last year during the same time frame. With a lower inventory than usual, due to homeowners renting out their properties or sheltering in their homes themselves, is what is fueling this cutthroat buying frenzy. REALTORS® in the Catskill region have never been so busy, and the frantic activity is not slowing down, even with the relaxation of the COVID-19 restrictions. New houses that were listed have seen interest of 15 showings the following day. If you’re ready to buy, now is the time to contact us to find your REALTOR® to ensure you can best navigate this unusually busy market.