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Supply levels usually peak in June and then tappers down as less seller's come to the market and more apartments go into contract. However, supply is down 9.7% from this time last year which makes sense since there was pint up inventory from 2020 that went to market in 2021. While the year over year supply levels may be down, the month-to-month supply is trickling up. If supply levels continue to go up this summer (June-September), we may be headed in a different type of market, one in favor of buyers. If you are a cash buyer, this is a great opportunity. If you are financing, lower prices does not mean lower housing costs especially when interest rates are higher. I believe we will see downward pressure on housing prices as buyers will start to react to increasing costs of day-to-day living coupled with the increase in interest rates.
Pending sales aka contracts signed is an indication for the demand of real estate in Manhattan. This data has consistently been increasing every month this year. However, compared to 2021, Manhattan contract activity is lower in every category including the luxury market. 2021 overall had better buying opportunity with lower interest rates and a lot more options for buyers to choose from.
If you have any questions about the market or you're thinking of buying or selling give me a call 646.586.3745.