NEW YORK (Reuters) – A year after the market began to recover, home buyers in New York’s suburbs are getting ready to start moving back into their neighborhoods to buy their homes, a trend that could boost sales as they begin to fill with buyers looking for homes with amenities.
The first buyers to begin making homes available to them will begin moving in November, the New York-based real estate website RealtyTrac said in a report on Thursday.
The city’s first big homebuyer to move to the suburbs will be Mark Rizzuto, owner of Rizzuti Group, which has a home in Chelsea and a home on the Upper West Side.
The company is planning to open a store in Manhattan in late October, Rizzutos website said.
“This is a long-term plan and we are building a very successful company here in New England,” Rizzotti said in an interview.
“I will be the first person to move back to New York.”
In November, homebuyERZ, which tracks sales trends, said sales in New Jersey and Vermont, which have both experienced a surge in home sales, will average 6 percent a year through 2023.
That would be the fastest annual growth rate in nearly two decades.
New York City has seen a rebound in sales since the housing market imploded in 2007 and the city’s job market crashed, prompting the city to tighten mortgage rules and tighten lending standards.
In September, the Federal Reserve raised interest rates for the first time in two years, boosting borrowing costs for homeowners.
The move has prompted some investors to buy property in the city, especially in the outer boroughs, which can be a magnet for potential buyers.
Rizzuto’s company is the biggest seller of single-family homes in the New England region, accounting for over a third of the market.
He said that, for now, he will not be moving to the city.
But that could change if sales in the midtown boroughs continue to grow.
“The midtown is in a very tight spot,” Razzuto said.
“If there’s a spike in sales, the city could start seeing an increase.”
New York is one of the most expensive markets for homes, with average prices more than double the national average of $315,000, according to the National Association of Realtors.
The average price of a single-bedroom house in New Hampshire’s largest city, Manchester, is $5.7 million, according a review of data from the state housing agency.
The median sale price in the state, meanwhile, is nearly $1.8 million, the median sales price in Boston and the median sale prices for New York and Connecticut.
“It’s definitely a market that’s under pressure,” said Mark McKeown, chief economist at the New Jersey Housing Finance Authority.
“There’s a lot of inventory that’s going to be needed.”
The city has been working on ways to address the demand for housing, including opening up more public housing.
But, as the number of properties available in the market continues to rise, many homeowners have decided to wait for their next home, said Andrew Smith, chief executive of Real Estate Analytics.
“A lot of people are thinking, I’m going to wait until I get a mortgage,” Smith said.
“In the end, we’re going to go into the market and see what happens.”