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Hi LivNY!,
As we bid farewell to the first month of 2024, the real estate scene in NYC has experienced a somewhat subdued atmosphere for both sellers and buyers. With inventory levels on the lower side and sales showing a mild pace, attention has shifted to speculations about the Federal Reserve's potential interest rate cuts and the trajectory of the stock markets.
Recent Observations:
Increased Contract Activity: In the week ending January 29th, Manhattan's luxury real estate market saw a notable uptick, with 25 contracts signed—an increase of six from the previous week. This marked the highest weekly contract signing activity since October. Notably, a downtown Manhattan townhouse recently fetched $72.5 million, representing one of the area's most significant sales.
Limited Supply, Elevated Prices: Manhattan's real estate market has witnessed its lowest inventory levels in nearly five years, reflecting a degree of hesitation among both sellers and buyers. Despite this cautious environment, Q4 concluded on a positive note, with home purchases closing 5.1% higher than the previous year, achieving a median value of $1.16 million.
Rental Price Trends: Median rental prices have shown a downward trend over multiple quarters, displaying signs of stabilization, with slight variations depending on location. Demand experienced a modest increase in January.
On Our Radar:
Benchmark Interest Rates: The speculation around the Federal Reserve's timing for its first interest rate cut has intensified as inflation has significantly decreased since its peak in June 2022 at 9.1%. While March seems less likely, May appears more probable. Anticipating a subsequent decline in mortgage rates, we expect a renewed surge in confidence among buyers and sellers.
Market Seasonality: As we approach the spring real estate market, with home prices rebounding, stocks flourishing, mortgage rates below 7%, and sellers poised for new opportunities, optimism surrounds the potential return of supply and liquidity to the NYC real estate landscape.
In Conclusion:
Whether you're considering buying or selling a home, it's crucial to remember that your representation matters. Choosing a broker with the right blend of experience and market knowledge can be a pivotal investment.
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