Foreign homebuyers are driving housing prices in many cities. In Brooklyn, demand for housing has surpassed previous records. Seattle is another example, with real estate prices outpacing the rest of the country. But is Seattle’s real estate market sustainable? What’s driving home prices in Seattle? And how can we stop foreign homebuyers from driving up housing prices? And what are some other factors that might be contributing to this phenomenon? Read on to find out!
Demand in Brooklyn surpasses previous records
The city has seen unprecedented growth in real estate sales this year. In the first quarter of 2021, more than 1,800 apartments closed, surpassing the previous year’s record of 2,600 listings. The influx of new listings is likely to unlock pent-up demand. The number of active listings reached an eight-year high, and August contracts were higher than last year. Over one-third of listings were newly listed.
The market recovered more quickly than expected in the Fourth Quarter, with closings up 12% year-over-year, after two consecutive quarters of decline. Moreover, the final three months of the year continued to show gains in contract activity. These gains are a sign that the market has experienced a significant recalibration in demand for both more space and better value. For these reasons, the market is once again expected to experience another robust year.
In October, sales activity in Brooklyn continued to increase year-over-year, with more than 400 contracts signed. The third consecutive month of increase in sales activity signals an impending rebound in the real estate market. Meanwhile, the number of newly listed apartments increased by 18% year-over-year. Despite the strong demand, the amount of inventory on the market has increased year-over-year for the sixth consecutive month. In November 2020, the number of new listings was at its highest level in over ten years, and the median sales price was $1,275,000.
Foreign homebuyers drive up housing prices
A recent study released by the Canada Mortgage and Housing Corporation found that foreign homebuyers are driving up the price of houses in Canada. Though foreign buyers make up a small proportion of the real estate market, many homebuyers say they have a significant impact on housing prices. The study found that 68 percent of respondents in Vancouver, 48 per cent in Toronto, and 42 per cent in Montreal believe that foreign homebuyers are driving up housing prices.
Although it’s unclear whether a foreign homebuyer tax will affect housing prices, a new poll suggests that the tax will have only a temporary effect. While imposing a new tax on foreign buyers last August seemed to have an immediate impact, the latest data shows that it had little effect on home sales. Home prices are up 8.8 percent from a year ago. A local housing expert says even a 30 percent tax wouldn’t have a significant effect on prices, unless they were high-end homes. The government is considering new rules regarding how to determine eligibility to buy a home in Canada and Ontario.
As a result of the tax, foreign buyers are now looking for lower-priced homes. A Ukrainian businessman, for example, who would have bought a $10 million condo just a year ago, is now looking at a $5 million apartment in Manhattan or a $5 million commercial property in Brooklyn’s Kings Highway. For a fraction of the cost of condo maintenance, these foreign buyers are now looking for a townhouse, which can be a better bargain.
Seattle’s real estate market outpaces most other places
The Seattle real estate market has been on fire in recent months, outpacing other places nationwide in price growth. With few homes on the market, the price of a home in Seattle is rising at the second-fastest rate of any place in the country. Meanwhile, in January, Phoenix outpaced Seattle’s housing market in year-over-year price growth. This data comes from the S&P CoreLogic Case-Shiller Home Price Index, which measures price growth across 20 metro areas. The index is a rolling three-month average of home prices, which includes the entire Seattle metro area and parts of King County.
According to Zillow, a real estate website based in Seattle, the home-price growth in Seattle and the surrounding metro area is nearly double the national average. The reason for this outpace is clear: Seattle is a desirable destination. While rents are increasing faster than the average for American cities, there are plans to provide more affordable housing. 아파트구입자금대출 For example, Mayor Ed Murray recently signed a law aimed at protecting tenants from discrimination based on their source of income. This bill is also meant to protect people paying for their housing with Section 8 vouchers.
The growth in Seattle’s housing market is likely to continue, despite the recent economic downturn. In August, Seattle’s home prices grew by almost 13 percent – more than twice the national average. As of August, Seattle’s home prices remain the fastest-growing in the nation, outpacing Las Vegas’s 8.6 percent growth rate. The Seattle real estate market continues to remain a hot commodity.