It seems like the real estate market for Manhattan apartments is undergoing a shift, and potential buyers should be prepared for changes in dynamics. The current buyer-friendly conditions, characterized by low activity, lower prices, negotiability, and a challenging listing environment, may be temporary.
Supply
to date we have surpassed 2022 inventory levels. It’s too soon to know what the supply will offer but one thing is for sure, seasonality matters.
Urbandigs.com
The anticipation is that the market will become more active as we get deeper into spring, although not necessarily reaching the frantic levels seen in 2021/2022. As activity increases, it could lead to a shake-up in the buyer-friendly dynamics observed today. The combination of low supply and increased demand during the spring listing season might result in more competition and pressure on existing unsold inventory.
If you’re looking to purchase a New York City property this spring, the advice is to be aware of the changing market conditions. While the current situation provides opportunities for buyers, the return of more buyers to the market may lead to a reversal of the current trends. It’s suggested that the bottom of the market may already be in, indicating that prices may start to stabilize or even increase as competition intensifies.
It’s too early to call, however, demand is starting to push higher.
Liquidity Pace
market change over time-based on the 30-day moving window of contract activity. Low activity represents a slow market.
Urbandigs.com
As a potential buyer, it’s essential to stay informed about the evolving market conditions, be prepared for increased competition, and consider acting promptly when suitable opportunities arise. Keep an eye on the spring listing season, as it could bring new options but also heighten the pressure on available inventory. As a potential seller, there is light ahead. It’s likely the market for sellers will get less challenging in the coming months.
On Rates:
https://www.mortgagenewsdaily.com/mortgage-rates/30-year-fixed
At the beginning of the New Year, investors baked into their forecasts an 80% chance the Fed would cut rates by March 2024. Given the recent positive economic news, that number has dropped to 50%. As a result, this has led to upward pressure on longer terms rates like mortgages. So, higher for longer.
What to Expect:
February is the beginning of the New York City spring market. There are real reasons to believe that we are entering a better environment than the one we’ve been in. Recall that volume and prices began declining in mid-2022 when rates began to rise. Is there pent-up demand and will it finally come out?
As we pointed out in our last newsletter, we need to give the spring market some more time to present itself. We believe that this year will be better than 2023 in terms of activity. There are signs that the market gears are beginning to thaw.
As always, we are here to answer all questions regarding real estate. Reach out at any time.
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