Hi!
Happy Halloween!!!
BOO! Apart from it being Halloween, it’s NOT actually scary out there….Real Estate is moving – however slowly and very property specific, but moving. Despite nationwide talk of a housing slump and if and when inflation and a recession will hit, real estate in NYC is highly localized, so please don’t let nationwide news impact your NYC decision. NYC’s luxury markets saw an uptick in contract signings in late September. Cash buyers are not affected by the increasing interest rates and are taking advantage of seller’s negotiability. The sale price for an average luxury home in the third quarter was up over 8% from last year, which is impressive considering activity in other markets.
Historically, real estate has been a favorable place to invest during inflationary times, as it’s considered a traditional store of value. As we mentioned, buyers have the upper hand as pricing is proving competitive and like we always say; you “marry the price and date the rate”. Refinance later with a better rate but secure the lowest and best price today! For sellers, a well-staged home, proper pricing, and most importantly… patience will ultimately lead to a successful deal. Seller’s need to be negotiable as buyers are savvy and looking for a great deal.
Rental prices are leveling off as we are heading into the holidays. NYC rental market saw record breaking prices in the last six months, so what goes up must come down. With that said, prices are still strong, but we are no longer seeing bidding wars for units as most tenants have settled into their new homes for the winter.
Lastly, the Fed has hiked up interest rate for the fifth time in September with another two more hikes expected. The next Fed meeting is scheduled for this Wednesday with yet another increase anticipated. As we mentioned before, NYC real estate is localized and with a large percentage of higher-priced apartments, therefore buyers here are borrowing above the conforming amount where jumbo rates are much lower than the rates in nationwide news headlines.
We hope the above update resonates with you and we are here to discuss everything “real estate” related anytime so free feel to reach out.
