As July settles into August, the New York real estate market has settled into its own strange rhythm. During the endless scorching days of summer, serious buyers in certain price ranges made their way through the limited inventory of coveted apartments as they made their decisions. This does not apply to the super-rich. They mostly do not live in the city during the summer and mostly have places to live. even after a Hot smoking market in 2021The most expensive neighborhoods are completely asleep. The coveted large real estate on top of the buildings, with a price tag of $10 million or more, doesn’t seem to lead to a call or an email asking for an offer from week to week. Interestingly, this applies to the condominium as well as the co-op market. Sponsors are negotiating on a much larger scale than they were at this time last year, and even so, contracts have been signed decreased by 30% or more.
While there is a lot of talk about the possibility of a recession, the tight job market And the rate at which unemployment continues to fall makes a real recession seem unlikely. However, some consumer issues are very real: It can cost $75 to fill your car with gasoline, and Supermarket prices continue to rise As the supply chain sparks import/export business all over the world. The Stock market It still hasn’t been able to gain enough momentum to spread sustainable gains. with Russia is still at war with Ukraineand the Chinese perform military exercises To point out their displeasure with Nancy Pelosi’s visit to Taiwan, not to mention the growing polarization it caused January 6 sessionsThe world outside and inside has rarely felt more fragile.
This sense of fragility affects the way sellers and buyers approach the real estate market. While many sellers are hoping the fall season, or some meaningful news about stock markets or interest rates, will bring their real estate prices back to what they were eight to 10 months ago, more and more sellers are increasingly acknowledging the fact that for sale they have to set the price. On the market as it appears today. Most deals made this summer reflect discounted prices, and most of these deals show sales prices of less than $4 million. In fact, the busiest markets in both Manhattan and Brooklyn remain those of $2 million or less.
Regardless of the price point, buyers are acting more cautiously than they have at any time since the pandemic lockdown began to ease. While a slowdown in uptake means real estate will stay on the market for longer, many parts of the city are still out of stock. And while there are a number of Park, Fifth, and Central Park West condos that have been on the market for months, better-priced one, two, and three-bedroom units costing less than $4 million are selling, often at Within a few weeks of listing. Competitive bidding has largely disappeared, as have sales at asking price. Most buyers these days would rather wait for the next purchase than “overpay” as they see it.
Many sellers hope for a more active market in the fall. The basis for this slowdown in the market is not seasonal. This is not a summer calm. It is a response to deeper issues at the regional, national and global levels. With the midterm elections approaching, there may be more pressure, not less; Buyers push back. So the current environment is likely to continue through the 2022 equilibrium.