Viewing entries tagged
mortgage interest rates
As we transition into the second half of 2023, a seasonal summer slowdown is upon us. The definite lull is dramatically different from the robust activity of the post pandemic summers of 2021 and 2022. Today’s sellers are frustrated by fewer showings, silent open houses, and no offers, not even low, embarrassing bids.
In uncertain times, when world events and macro outlooks are dire, there’s no better urban center to invest in than New York City. Our residential market is leveling to be sure, but we’re holding our own. In fact, there’s opportunity, and smart home shoppers are buying.
What are we seeing?
In January, following a record setting 2021 post Covid recovery, I wrote that Manhattan real estate was poised for a strong 2022. Sales volume last year totaled $30B—6% greater than the previous record set in 2007. During the first half of this year, sales volume reached $15.6B, the highest half year mark in a decade.
In the last 30 days in the residential resale market, there’s been a steady rise in the number of price reductions. Listing supply has increased slightly, but that may ebb as we move further into the summer months. Contract activity has been relatively steady, despite the spreading uncertainty and unease created by a confluence of unmitigated factors, namely rising interest rates (up .75% yesterday with more hikes to come), the ongoing war in the Ukraine, out of control inflation and stock market volatility.
Are anxiety and uncertainty creeping into our marketplace this quarter with the current macroeconomic and geopolitical concerns?
The burst of new listings we were expecting to begin mid-January never materialized. As a matter of fact, the continuing low supply of properties is pretty significant. Here’s what we are seeing.
Neither winter’s frost nor shortened daylight hours can dampen end-of-the-year holiday parties, with the first Chanukah candle at sundown on the 21st, Christmas on the 25th and Kwanzaa on the 26th. With flutes of champagne and mugs of hot chocolate, we’ll bid goodbye to the last month of the decade to welcome 2020. Merry New Year one and all!
