The Most Highly Anticipated Recession & What It Means For NYC Real Estate
The Most Highly Anticipated Recession
There is so much hype over a potential recession and how it might ultimately impact the NYC real estate market.
Personally, it's clear a recession has already been happening slowly over the past few years as evidenced by the inflation, slowdown with the shutdowns and interest rates going up.
The most interesting part of the equation is that there is still record low inventory in NYC - even though rates have increased from 3% to around 6%. The stability of our real estate market here has brought more cash buyers who are less sensitive to interest rates. The record low inventory is expected to continue because owners that are locked at low rates find it even more challenging to upgrade spaces into a higher interest rate.
What does that mean for you?
If you are considering selling, if you properly position (pricing, furnishings, access) it should attract buyers quickly. If there is a fatal flaw (i.e. high maintenance, potential lawsuit, estate-condition) you might need to work on the front-end to mitigate any hurdles.
If you are considering buying, most listings are still selling +/- 5% of the asking price with buyers wanting "new" and you will not have your bid accepted if you are anticipating future declines of prices. Working in both Manhattan & Brooklyn, the Brooklyn markets have extreme shortages of 3-4 bedroom inventory so pricing is up significantly for that sub-market. Even Midtown Manhattan (which has been slow for three years) sales volume is up!
If you are a landlord or tenant, the rental market is still extremely tight with most neighborhoods commanding the tenant paying the broker fee (minus parts of Midtown East / Upper East / Upper West / Harlem / Downtown Brooklyn). Bidding wars for rentals are frequent in Brooklyn Heights, Park Slope, Soho, & West Village.
I'm looking forward to what the rest of spring, summer and fall look like and would love to help you with all of your buying, selling and rental needs!
5 Things Agents Are Talking About
1. Are you looking to purchase a new construction condo? A new marketing strategy of agents is launching projects privately to get to 20% sold, then raising prices before launching publicly. If you're curious to the top 5 buildings not currently listed, please reach out!
2. The 6% mortgage is now accepted as the "new normal" rates
3. Homeowners are becoming accidental landlords because they don't want to let go of the low rates they have on their primary residences but also need more space
4. 2023 is expected to have a larger percentage of the 14,000 NYC licensed real estate agents leaving the industry due to lower sales volume (in an already high turnover industry)
5. More and more developers are offering creative ways to incentivize buyers to bid on their properties
Welcome to the World, Milo Jan!
Raising a family in NYC is something I've always looked forward to and now I'm a mother of two <3
I was always nervous telling clients that I was pregnant in fear that I might not be hired. But after having Frankie in 2021, my business continued to grow.
I'm fortunate enough to have a network of family, friends, babysitters and daycare as my "village" to help! Here are four ways to support my business without buying, selling or renting!
1. Write a 5 star Google review (I will send you a link!)
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more with Danielle Nazinitsky and her team of top-producing real estate agents.
