Hi!
Hope everyone had a relaxing and enjoyable summer!
As we approach the fall season, everyone’s feedback and assumption of the market is mixed depending on the news coverage you’re watching or reading. In August, we saw a slowdown in the volume of sales and inventory which is typical during the end of the summer. The Fed has proven to be fully committed in increasing interest rates to curb inflation as we just saw in September. Rates are averaging 6.82% for a 30 year fixed mortgage. NYC, as demonstrated in the past that regardless of interest rates, deals are being made – times like these open the door to opportunities.
To keep things in perspective, 2021 was a historically distinctive period in real estate—a year that marked the transition out of a pandemic, low interest rates, strong equities market, and low unemployment. What we are seeing is a market that is stabilizing. So, what does that mean?
For our Buyers –
Prices have come off their 2021 highs. Although inventory is still low, you can expect Sellers, who are properly advised, to price their properties fairly to garner strong buyer activity. Keep in mind, it’s better to secure a fair/lower price now and have the option to refinance your interest rate in the future. The “you marry your price but only date your interest rate” approach.
For our Sellers -
Buyers are actively looking. Since inventory is still low, there is a window of opportunity to secure a buyer. Sellers should not expect to list with 2021 prices. Price properly and expect to be reasonable and creative with negotiations. We have decades worth of experience with such things so don’t hesitate to ask us our advice.
As rents continue to rise, it is showing signs of stabilizing as we get closer to the end of the year. More tenants have secured two year leases, decided to renew and stay put after calculating the high cost to move in NYC. Inventory is low and vacancy rates remain just above 2%. As we have mentioned in the past, this is a good time to explore owning vs. renting. Even with the higher interest rates, there are more benefits to owning then renting as rents tend to increase year after year.
As we transition into the 4th quarter, the LivNY Team is here to guide you.
All the best,
