The Manhattan real estate market, like the market across the United States, is cooling after a blank year.
Sales of existing homes fell six months in July, the National Association of Realtors reported in its Aug. 18 report. report across the United States. Home prices fell for the first time in three years in July, with sales 20.2% lower than they were a year ago, according to a report by the software, data and analytics firm. Black Knight Mortgage Analysis. It was the biggest one-month price decline since 2011. The company also noted that July’s performance was the second-worst since 1991.
Manhattan’s luxury home market was no exception. Data from reports by Miller Samuel and Douglas Elliman showed that Manhattan co-op and condo sales contracts fell 30% in the second quarter compared to June 2021, CNBC noted in a separate report.
“We kind of went from driving on the freeway at 120 miles per hour to coming back on the freeway at 55 miles per hour, and it just feels a lot slower,” he said. Jennifer M. Corcoranreal estate salesperson at HEART Real Estatewho called 2021 in 2022 “the best years” of many real estate agents’ careers.
Federal Reserve officials indicated in July that the slowdown in the housing market would continue, according to the New York Times. However, the market is sending mixed signals. The upcoming midterm elections and the current political climate are aggravating the situation.
While we are talking about a recession, the agents are not alarmed. The underlying economic data points such as number of jobs and falling gas prices “do not signal a recession,” said Corcoran, 55.
Matthew Bank, Vice Chairman of Bank Neary Real Estate, added: “There are things happening in the economy and interest rates are holding some things back, but there is still a lot of robust spending. [and] win and a lot of interest in New York.
For some LGBTQ people, the current anti-choice, anti-gay political climate is sparking serious conversations about where to live.
Kristi Ambrosetti, a lesbian real estate agent in Sotheby’s International Realtysaid some of his LGBTQ clients talk about plan B if gay rights are eroded in the United States.
“We were blindsided by abortion rights,” Ambrosetti, 41, said of the Supreme Court’s decision overturning Roe v. Wade on June 24. “It was a wake-up call. It’s not going to stop there. We know what Clarence Thomas specifically told us is happening with gay rights,” she continued.
“I hear a lot of conversations and then it all comes back to New York real estate,” she added, noting at the same time that people have faith in New York. People “feel that New York pride.”
Is this New York pride enough in the face of the factors that are cooling the housing market and making buyers and sellers unsure of what’s next?
Agents who spoke with Gay City News said most of their LGBTQ and straight clients are relatively focused on the usual home-buying decisions and rooted in New York City.
Positive news does not influence some buyers and sellers. Ambrosetti said she worked with a handsome, young, straight couple who were first-time homebuyers, but were rocked by the recent stock market drop and pulled out of their deal.
Bank, 56, and Corcoran also said buyers had recently become nervous and pulled out of deals or the market.
Some sellers are seriously considering taking their homes off the sales market and listing them on the rental market, Bank and Ambrosetti said.
“Sellers are struggling with this unknown and how to put the puzzle together on their own,” Ambrosetti said.
Do the trick
Multiple deals and contracts are still being signed in some pockets of New York.
Ambrosetti called the market heading into the fall a “buyer’s market” where “bargain priced apartments” will do well.
Some sellers, Bank said, “didn’t really drop their asking prices that much.” The discount given by some sellers was not significant, only 1% or 2%.
New York City’s median sale price hit a record $1.25 million in the second quarter of this year, CNBC reported, citing data from real estate firms Miller Samuel and Douglas Elliman. This is the highest total for the second quarter since the housing boom of 2007.
Ambrosetti pointed out that for sellers, pricing is “critical.”
There are still deals to be done in certain pockets of New York, Ambrosetti and Corcoran said, rattling off a list of neighborhoods where they’re signing deals.
“I think there are opportunities for buyers, and they have great leverage right now,” Ambrosetti said. As the market moves towards a slightly more favorable situation for house hunters, “buyers are holding a few more cards right now.”
“If you have a specific type of property in mind, it’s really important to find an agent with experience in the neighborhoods,” along with the type of property and price range you want, Yasui said. “They will have their finger on the pulse of this specific type of property.”
After a quiet summer at the office, Bank said buyers were returning from summer vacation, reassessing buying versus renting, and heading back to his office.
‘I’ve had a lot of offers accepted, contracts signed and people coming back and seeing things,’ Bank said, saying it wasn’t the ‘frenzy of activity’ he had known. few months ago.
The surge in the rental market is “kind of supporting” the real estate market and “purchasing demand because it’s still relatively a bargain compared to the high rents”, he added.
The problem, from the agent’s point of view, is the housing inventory. There’s not enough.