What Happened in Real Estate in June 2022
Skyrocketing home prices, historically low mortgage rates, and a lack of inventory may be coming to an end as the Fed continues to tighten policy amid staggering inflation. As the market responds, or recalibrates as we say in the industry, there is a lot to keep our eyes on!
Manhattan, of course, remains resilient in its efforts to break the mold. While further below we’ll examine the slowdown in the market, Manhattan continues to set records. In June, the median sales price in the Big Apple hit an all-time high and the number of sales reached the highest total since 2007. Listing inventory for condos also saw a notable increase.
The data also shows that Manhattan buyers have begun to lose the urgency that punctuated the past 24 months, creating a more comfortable buying environment. In the third week of June, a total of just 12 contracts were signed, marking the lowest tally since the final week of 2020. While the volume of transaction was low, the homes’ asking prices totaled nearly $101 million, with a median of $5.335 million, showing continued strength and opportunity in the luxury sector.
In Brooklyn, the number of newly signed contracts fell for the second straight month, a direct result of rising mortgage rates and an uptick in new listings offering buyers some breathing room.
The story is similar in Westchester, where June’s total contract signings were down, and the number of listings is slowly beginning to expand. New York Yankees legend Mariano Rivera is one Westchester seller who actually took a $2 million loss last month, having purchased the brand-new home during the peak of 2006’s housing boom. On the other hand, the 3,400-square-foot modernist home at 95 Conant Valley Road sold for more than $3 million – a whopping 226 percent of its $1.335 million asking price. Similarly, a lakefront home in Pound Ridge sold for more than double its asking price after just a few days on the market.
Miami waterfront sales still haven’t plateaued, despite unprecedented price surges, changing interest rates, and many buyers looking further inland, as we mentioned last month. However, on the whole Miami-Dade County follows the national trend: the market is steadily slowing down. New contracts have been falling year over year since January, but 2020 set the stage for unusually elevated activity in 2021, so it’s important to remember that while activity is declining, it’s generally aligned with pre-pandemic patterns.
New inventory is encouraging, but rising interest rates can be frightening. (Don’t forget that they’re still relatively low from a historical context!) It all just depends on your perspective. That’s why we’re here to break it down and offer personalized guidance to clients, because everyone’s needs can be unique and real estate is not a one-size-fits-all solution. There is still plenty of opportunity to make a smart investment, reap the rewards of the market, and find your perfect home.
We also want to take a moment to expand on last month’s announcement of Andrew S. Cohen to the ESPINAL | ADLER team operating out of South Beach. Andrew is a seasoned negotiator and trusted advisor with a degree in International Business who has been a real estate broker in Florida for more than 18 years. Fluent in Spanish, he previously owned and operated his own boutique firm in Miami and is excited to serve the South Florida community under the ESPINAL | ADLER umbrella.