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Hi LivNY!,
October Insights: NYC Real Estate Market
As we are in the midst of the Fall season, let's explore the latest trends and developments shaping the city's real estate landscape.
Inventory Ups and Downs:
Fall typically ushers in a modest rise in listing inventory, and after summer holidays, buyers return to commence their apartment search. Recent data from Miller Samuel reveals that in September, Manhattan and Brooklyn saw their listings increase by more than double compared to August. However, it's important to note that year-over-year inventory and contract activity in both boroughs remain lower, so these upticks aren't likely to trigger an immediate market shift. Additionally, the 30-year mortgage rate has climbed to nearly 8%, the highest in 23 years.
October Outlook:
Predicting the exact sales direction for October remains challenging. Inflation-wary buyers are expected to continue seeking value in their property acquisitions, particularly if they're eyeing properties still on the market since Spring. Sellers should remember to price their homes according to the current market, as current closings generally reflect the previous season's conditions.
Rental Market Dynamics:
Despite some media reports, rental prices in the boroughs have either stabilized or experienced a slight decline. This trend may be partly seasonal, but it could also indicate that rental rates have reached their peak and may continue to decrease.
Key Considerations for Sellers:
- In the 3rd quarter, median home prices in Manhattan rose by 2% annually to $1.175 million, while median luxury home prices in the boroughs increased by 4.3% annually to $6 million. Manhattan is currently experiencing a significant shortage of luxury homes.
- International buyers are gradually returning to NYC. According to a Bloomberg-cited survey, 32% of prospective buyers stated their primary residences were outside the US, marking the highest percentage since the 3rd quarter of 2019. International buyers are attracted by the value offered in the current market.
- The latest inflation data suggests that we are approaching the Federal Reserve's 2% target range. If inflation continues to slow, the Fed is likely to halt interest rate hikes until 2024.
Why Work With An Experienced NYC Real Estate Agent: Collaborating with a reputable real estate agent remains the best approach to gain market exposure and secure the representation you need to achieve a satisfying sale price.
As always, we are here for all your real estate needs and happy to guide you through the evolving NYC market.
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