Despite noting concerns ranging from economics to geopolitics to rising interest rates, the Douglas Elliman | Knight Frank survey panel is optimistic about 2023. Without discounting those concerns, we are too! In the survey, real estate is cited as the leading opportunity for wealth creation for the year. In reality, while property values nationwide have been under pressure for several months as interest rate rise and sales prices recalibrate, there remains limited evidence of enough distress to actually push values down. And with market behaviors back in the realm of predictable, the possibilities are as exciting as ever.
In Manhattan, condos and co-ops both closed 2022 by notching the highest median sales price in the last 10 years, according to the Elliman Manhattan Decade Report covering 2013-2022. In January, newly signed contracts declined slightly from December, but new inventory increased for the first time since September. The uptick is a positive sign, even though new listings remain lower than they were before the pandemic, which means that buyers may still feel limited in their options or experience some competition.
Speaking of competition, Brooklyn was home to the lion’s share of New York City bidding wars last quarter, according to data from StreetEasy. In January, newly signed contracts declined for just the second time in five months. On the other hand, new inventory increased for the first time since September, including a notable uptick in co-ops on the market. The luxury market slowed in the latter half of the month, where just 21 contracts were signed for homes asking $2 million. Townhouses dominated both in volume of transactions and price, followed by penthouses with high-rise views. The rental market was equally as competitive in January and median rent in the borough rose to the second highest peak on record.
In Westchester, the number of newly signed contracts in January decreased again, continuing a trend set back in May 2022. New listings rose for the first time since June, particularly in the luxury sector. In January, 32 single-family homes asking more than $2 million went on the market along with 12 townhouses asking more than $1 million.
Miami-Dade Country took the title for most competitive apartment market in 2022, with an average of 32 renters vying for each available unit. At the same time, the residential real estate market is showing signs of cooling after nearly three unprecedented years of heightened activity—demonstrated by a stark decrease in the number of active realtors, which shrunk 36.3 percent in the last quarter of 2022. Really, it’s just another sign of the market normalizing; following a banner 2021 in Miami, active agents were up 14.5 percent in the first quarter of 2022. In the last week of the month, the condo market began to show the same signs of cooling as total sales price, average sale price, and price per square foot all trended downward.