Let’s enjoy summer! We deserve it! The real estate market has officially turned boring as we enter the dog days of summer! With the most recent mind-blowing smoke from Canadian wildfires blanketing the New York City skyline, we all need to catch our breath and chill out on a beach for a while. A break from the madness is good for the soul!
We are beginning to see a topping formation in both Manhattan and Brooklyn supply. We are not expecting any meaningful increase in new listings until the fall market. The liquidity story continues to be quite good. Deals are getting done because both sides are working for the same goal – a signed contract! We would add that there is somewhat of a bifurcated market between renovated and unrenovated apartments. An apartment in good condition or requiring only cosmetic work will likely get more action. Unrenovated apartments or buildings with issues are being penalized by buyers who don’t want to go through the hassle and additional costs of a renovation or deal with any unknowns and uncertainties in a building.
The macro events that have been with us aren’t going away anytime soon. However, we look for the good news and there was some with the inflation number for May. Also, the Federal Reserve paused its campaign of interest rate increases, keeping rates steady for the first time in more than a year, as policymakers wait to assess the health of the economy.
Overall, both the Manhattan and Brooklyn markets are demonstrating a continued state of neutrality and balance.
Manhattan Market
As Manhattan heads into the summer, the usual spring inventory build has turned to a net decline. However, demand remains strong. The inventory constrained market remains balanced as contracts getting signed continue to show signs of strength.
http://www.urbandigs.com
Brooklyn Market
Inventory typically builds during the spring active season, but this season’s build in Brooklyn was the lowest since 2021 as supply remained anemic while demand picked up. Even as the season inventory downtrend has started, the Brooklyn buyer remains active resulting in a neutral market.
http://www.urbandigs.com
We will continue to watch the New York City markets to see if there is any change in the current stability as well as the effect of the overall economy. Even though, the Federal Reserve left interest rates unchanged this week, policymakers continue to try to assess how the economy is reacting to their campaign of rate increases to slow demand and wrestle inflation back under control. Officials also predict that they might continue to raise interest rates this year, based on fresh economic forecasts, suggesting that policymakers expect to make two more rate increases by the end of 2023, a clear signal that policymakers think that they may need to do more to cool growth and control price increases.
We will continue to keep you informed.
Recent Comments