The data is in, and the market is indeed trending towards normal patterns. However, with rising mortgage rates, tightening inventory, and the pandemic’s rush of activity behind us, many people are understandably cautious about both buying and selling right now. But life’s milestones don’t always work on the same calendar as the economy. We know that each client’s needs and wants are different, and with guidance from experts like our team here at ESPINAL | ADLER who are entrenched in the data every day, there is no “wrong” time to buy or sell. It’s all about figuring out the opportunities and best possible options for your individual situation at any given time.
In October, New York City real estate had a busy month when you compare it to the summer slump. Newly signed contracts in Manhattan exceeded totals from September, and while Brooklyn struggled early in the month, activity hit a growth spurt in the back half. The number of transactions again trended downward in comparison to last year’s boom, but they slipped just nominally from pre-pandemic levels — for the first time after a long series of robust gains. Townhouses continue to be popular, particularly in Brooklyn; of the 21 sales in the borough in the last week of the month, 16 were townhouses. The most expensive of which was 15 Willow Street in Brooklyn Heights, a 25-foot-wide townhouse with six bedrooms and four bathrooms with an asking price of $9 million.
On the other hand, luxury market transactions in the City were down. In fact, newly signed contracts exceeding $4 million in Manhattan fell for the sixth straight month. Together with rents in the luxury sector trending upward, this shows that higher-bracket buyers are opting to stay in the rental market while interest rates remain on the incline. In a report by Miller Samuel, Jonathan Miller notes that the wealthy are able to shoulder the premium despite the current economic impacts of inflation. Meanwhile, overall rents in NYC decreased for the second straight month. Even still, it remains the most expensive apartment market in the nation with a median rent of $3,860 for a one-bedroom.
New listings declined across New York markets, keeping supply tight. In Manhattan, they declined both year over year and month over month and were well short of pre-pandemic levels for the fourth time in five months. In Brooklyn, new listings declined annually for the third straight month. And in Westchester, year over year declines in new listings occurred again, marking a trend for 17 of the past 18 months.
As the country watches closely for impacts from the economy on the real estate market, Miami has yet to show any signs of distress. Florida continues to draw new residents and remains a favorite of international buyers, which is keeping prices high, even in traditionally less expensive non-waterfront areas. Newly signed contracts have been declining throughout 2022, but so have the number of new listings. For the past six months, new listings have been even lower than pre-pandemic levels.