In this month of May, New York City is really feeling alive. The warm weather brought everyone out and the streets are busier than ever. Hard to believe that just two years ago in May New York City was a ghost town. Now, the restaurants are packed and people from all over are coming into the city to enjoy all the fun activities. It really has been an unbelievable turnaround.
Still, it’s not all fun this spring. Volatility in the equity markets has been unbearable. Investors accustomed to stocks only going up have learned a tough lesson. The drawdowns have been so bad that recession fears are on the minds of consumers. With inflation raising the prices of goods, consumers have less money to spend, which could cause an economic slowdown.
We’ve been in a historically low interest rate environment, and these changes are making a significant impact on the economy, especially the real estate market. Mortgage applications and refinances have slowed dramatically. Mortgage brokers are figuring out creative ways to adapt to the new environment after years of unprecedented business growth. Now that the cost of a mortgage is so much higher on a monthly basis, nationwide buyer demand for real estate has slowed. However, NYC real estate is unlike any other market, and has held strong.
The LivNY Team had a fantastic month. It’s not too much of a surprise as we were ready to list a lot of apartments for sale and take advantage of the strong selling season. We have 8 properties in contract waiting to close, 7 on the market, and 4 new listings coming soon. We’ve been very busy around here!
It’s a hit or miss market, where properly priced apartments move very quickly, but we’ve also noticed buyer preferences have changed. Buyers are looking for move-in ready apartments, where no work needs to be done. Talk of the tough supply chain and tight labor market has made it tough to imagine doing a renovation. Many buyers are opting to purchase instead of rent, which usually means they want to movein asap. They don’t want to take on a project where they will have to wait. They’re willing to pay a premium to avoid the hassle. Also, apartments need to have low carrying costs. With the monthly mortgage expense increasing, it is important to find units that have relatively low real estate taxes and common charges. With a lot of inventory coming on the market, buyers are on the lookout for the perfect place.
The spotlight this month is on buyer agents. In a hot market, it is imperative to have representation. Things move fast and there is no room for mistakes. Since the market has been so strong, there are a lot of agents in New York City. It is best to work with an experienced agent you can trust will bring you to a successful close.
