Across the board, real estate markets are proving to be vulnerable to the rising interest rates. In Westchester, Miami, and even areas of New York City, the red-hot demand showed signs of cooling throughout April. And just as mortgage rates took some of the edge off the competition, the seasonal expansion of new listings we’ve come to expect from the summer months began, adding to the feeling of balance. However, on the whole, experts expect the listing shortage to endure, citing supply chain issues, lasting effects from the 2008 financial crisis, and an influx of millennial buyers entering the market. (More than 4 in 10 homebuyers are now millennials, according to a report by the National Association of Realtors.)
Because demand has been exceptionally high in the wake of the pandemic, this slowdown hardly means a lack of action in the market or a decline in prices — yet. April was actually a strong month for luxury real estate in Manhattan. There were 164 signed contracts for homes asking $4 million or more and their combined listing prices totaled $1.3 billion. Penthouse B at 20 Greene Street set the record for highest price in a building without a doorman when it sold for $35.8 million.
In the last week of the month, Brooklyn had 31 homes enter contract with listing prices above $2 million, down from 42 the week prior. Townhouses continue to be the borough’s most popular home type, even as transactions slow week over week.
Westchester continues to be one of the most desirable places to live; luxury sales in the county continue to rise. In April, housing inventory actually increased by more than 8 percent, despite being down nearly 30 percent year over year. Single-family activity declined for the first time in three months, while condo contracts saw a nominal increase.
In Miami, the changing market showed itself through both a decline in number of sales and average sale price. At the end of April the average condo sold for approximately $799,000, down from $897,000 just one week earlier. A Sunset Islands home set the record for non-waterfront home sales in Miami Beach when it closed at $12.5 million. In the rental market, rents surged another 5.2 percent in April, making Miami the third-priciest city in the country to lease an apartment.
Regardless of market activity, a new amenity trend is on the rise: pickleball courts. An amenity for all ages, developers have taken notice. Pickleball courts are coming to new developments, country clubs, and even private homes. For example, the Standard Residences in Miami, expected to be completed in 2023, will offer an indoor court that can double as a party room and includes disco balls hanging from the ceiling.