Going into June spirits were high as everyone got excited for the start of summer, however it ended up as a pretty grueling month. It’s finally come to a close and everyone is getting ready to celebrate our Independence Day. What are your plans for the 4th of July and the rest of the summer?
It has been tough to navigate these uncertain times. Inflation has gotten out of control, with prices of food & energy crippling the consumer. With sky high costs for necessities, people have very little money left over to spend. The stock market has been absolutely devastating, with the worst first half in the equity markets in over 52 years. Everyone is looking for light at the end of the tunnel, but it is hard to stay optimistic. The Federal Reserve is committed to fighting inflation by raising interest rates.
Even in the midst of this turmoil, The LivNY Team has been doing well. It helps that the New York City real estate market always has a lot of activity, although, rising interest rates have caused the sales market to slow down. There is more inventory on the market, which is really nice to see because many homes that hit the market are very unique and rare. Typically those homes would fly off the shelf before you even had a chance to see them. Now, there is less of a rush to purchase, so buyers finally have a little more flexibility and time to act. On the other side, the rental market continues to surge. Many would-be buyers have been hit hard by the increase in monthly expenses and have chosen to rent instead. The demand for rentals is astonishing. New York City is a great place to live and also very expensive!
Unsurprisingly, the news has been grim, but still some very insightful reading. The New York Times detailed the highest mortgage rates since 2008 cooling the housing market. There was a great piece about New York City’s red hot rental market. There was another interesting read about the struggle to get employees back into the office in NYC, Chicago, and LA. It’s been pretty fascinating that even without a need to go back into the office, people are still choosing to live in the big cities.
The spotlight this month is on rising interest rates. With mortgage rates doubling in the blink of an eye, there are a lot of implications for the real estate market.
