Bronx Housing Market Thrived in 2021; Activity to Remain Strong in 2022
Bronx’s thriving real estate market showed no signs of slowing in the third quarter of 2021. The dwindling housing supply and rising demand have resulted in a steady flow of transactions throughout the summer months.
The Bronx has also been one of the hardest hit by the COVID-19 pandemic, with the highest job losses among the country’s major metropolitan areas. Bronx has been recovering from the economic effects of the pandemic. The demand for housing is outpacing the supply, favoring home sellers who are managing to hold good leverage in price negotiations.
In the third quarter of 2021, while some homebuyers chose to persevere through bidding wars, escalation clauses, and line-out-the-door open houses, others decided to put their buying on hold and rent for the time being.
Buyers in the Bronx paid 10% to 20% more than they would have pre-pandemic.
Buyers are shopping for properties all over the Bronx with Spencer Estates in Country Club, Morris Park, Pelham Bay, Pelham Gardens as the most sought-after expensive neighborhoods in the Bronx.
Based on current market conditions, the supply and demand dynamics will likely push prices north again over the next 12 months. Mortgage rates remaining low, pent-up demand, and good discounts will keep the demand high in 2021. The New York housing market could favor sellers over buyers.
Despite the pervasiveness of sticker shock, some buyers are choosing to charge forward in today’s less feverish market to secure a home and lock in a historically low (and rising) mortgage rate.
“Prices will continue to go up as long as the mortgage rates remain low. Another reason for the housing demand going up is that the Millennials are buying properties more than ever” said Emran Bhuiyan with EXIT Realty Premium.
The Bronx housing market is still moving upward, albeit at a slow pace. That slowing, or so-called normalization, is expected to continue into next year: The housing market will cool off in 2022, but not by much.
I anticipate price growth will slow down in 2022.
