Top Factors Responsible for Driving Ellicottville Red-Hot Real Estate Market
by Abdul Aziz Mondal Real Estate Published on: 04 July 2017 Last Updated on: 28 August 2020
Ellicottville Real Estate Market continues to grab international attention as there’s a continuous discussion about its escalated prices. There have been claims that the housing market is flourishing, whereas there are many believing that there will be a crash.
Here is a list of the factors responsible for driving Ellicottville Real Estate Market.
Foreign Buyers & Foreign Investors
It won’t be an overstated thing to say that the main reason for the skyrocket housing prices in Ellicottville is a great amount of craze among the foreign investors, that too in a market that has limited housing supply. And the fact is, Ellicottville real estate market is facing the impact of foreign money – mainly, rich foreigners entering the Real Estate Market.
Plus, technology makes it easy for foreign investors or buyers to participate in the local economic decision without even stepping into the city.
Immigration
Ellicottville is one of the most favorable and looked-for places to move in among the immigrants which, for sure, adds to the increased demand for residential property. Immigrants do get attracted to the infrastructure, great benefits, excellent educational institutions, and most importantly, the job opportunities nearby Ellicottville. It has one of the hottest job markets across the globe.
Lower Interest Rates
It is very easy for prospective buyers to get inclined towards such a housing market where the rates of interest are low. It becomes so very affordable for a new buyer to invest in a new home or an existing homeowner to move into a larger home. The interest rate at present is much lower than what it was a decade ago.
Read also: Online Loans Promising Its Different Benefits and Offering Lower Interest Rates
Employment Growth & Hottest Job Market
As per the economic records, the job market in New York surpassed and it continues to be the hottest among the other areas.
Limited Land Supply
Ellicottville, NY is a well-developed place and it has minimal land vacant left to build low- rise homes. The place is regulated to protect the Greenbelt which hints Ellicottville to build high rise buildings rather outwards. Now, this leads to a decreased supply of low rise homes and increased advantages for detached or semidetached homes or townhouses.
Ineffective Regulation & Money laundering
In addition to the messed up real estate situation, there are fraudsters and tax evaders who enforce bad conduct and outgrow money laundering problems. And only a few agents lose their license over misconduct, most of them are still doing the business their way.
Shadow Flipping & Assignment Sale
Now the agents are playing their game smart. They thrust for hasty home sales as they can resell the property to another buyer at a higher price, of course, leading to two commissions on a single property. This process is known as shadow flipping and the legal term for the same is Assignment sale which permits the registered buyer to sell the possession to another buyer who is interested, even before the first sale gets concluded.
As the population in Ellicottville continues to grow, people find it a luxury to own a detached or a low-rise home but the land is scarce, it is not possible for the majority of the population to get housed in low rise homes.
Whatsoever the problems are, immigrants are still bucketing into the city and it is affecting the real estate market. This debate over the Real Estate Market does not seem to get over soon. But yes, any hike in interest rates or fewer people immigrating or any economic shock wave will have a great impact on demand. However, looking at the current scenario, any of these situations is unlikely.
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