It’s hard to believe we’re already approaching the final days of summer! The last day of summer is officially September 22, but it always feels like Labor Day marks the end. In fact, most schools are already back in session. It’s time to soak in the sun and enjoy the last of the warm weather.
In the world of real estate, this summer couldn’t end fast enough. What is typically a seasonal slowdown feels a bit more dramatic than usual. The housing market has been clobbered nationwide. Sales are down over 20% year-over-year. We were in a super hot housing market, but the cool down happened very fast. Interest rate increases quickly flipped the upper hand in the market from sellers to buyers.
The buyers definitely have the upper hand right now. However, similar to covid, there are a lot less buyers around in times of uncertainty. Also, sellers are not lowering their prices enough to factor in the steep rise in interest rates. We’re in an interesting place where sellers aren’t eager to list in a slower market, and potential purchasers aren’t seeing the prices they want. After Labor Day, we expect a lot of inventory to come on the market, and we’ll see how quickly it is absorbed.
The LivNY Team has been outpacing the rest of the market and helping both buyers and sellers navigate the new environment. It is a great time to be hunting for deals, and there are plenty of purchasers on the lookout. Now that sellers are willing to be more negotiable, why not get aggressive and land that apartment you’ve been waiting for?! On the listing side, LivNY has been helping sellers strategize the best way to accomplish their goals. As NYC real estate veterans, we’re able to express the value of property to anyone looking for opportunity in this market.
The real estate news couldn’t get much worse. The housing data is horrendous, and experts are debating whether this is a housing correction or recession. It didn’t help when the Federal Reserve made an announcement re-confirming their commitment to fight inflation by raising interest rates. However, where some see problems, others see opportunity. Forbes wrote a great article discussing the window of opportunity for Manhattan home buyers. You don’t want to miss your chance to be a NYC homeowner!
The spotlight this month is on interest rates. Everyone is debating the path of interest rate hikes. How far will the Federal Reserve go in their crusade against inflation?
