Notes on the Year-end


2015 wrapped up with a flurry of activity for my buyers, in part due to friendlier pricing and a motivation to secure financing before the Fed raised rates. Properties that were priced correctly sold briskly, and over-priced properties saw swifter price adjustments and drew negotiations. For buyers, this meant a more rational marketplace, and for sellers, it meant adjusting to a more rational marketplace. As for interest rates, last week the Fed finally announced that it was raising interest rates by 0.25 to 0.50 percent. In response, mortgage rates creeped up a few hundredths of a point. While rates are expected to continue their climb, it will most likely be a steady uptick and not significantly impact the housing market in NYC in the next 12-18 months. In the last few months, many buyers have expressed concern to me about rising rates and their potential impact. My advice has been to examine the actual effects of a few hundredths or tenths of a percentage point on their monthly payments and remind them that in 2013, 4.25% on a 30-year fixed mortgage was considered a great bargain. Moreover, for many buyers, rising interest rates may be the harbinger of better returns on the rest of their investment.

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Isil Yildiz Team

 

Compass 

110 5th Avenue

New York, NY 10011

(P) 985-714-4470

isil@compass.com

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Compass is a licensed real estate broker and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.