NYC Real Estate - Q3 2022

Greetings, and I hope you are doing well.

?Manhattan Overview:

?The latest quarterly Manhattan residential data shows resilience as the market normalizes after a hyperactive 2021. High-interest rates and record inflation deter those at a more attainable price point, but buyers are willing to pay in all price categories when priced right.

?While comprehensive Q3 data represent a market correction, some things remain unchanged.

First, New York real estate has historically appreciated, and people will always need a place to live. While the bidding wars and soaring prices of 2021 may be over, it would be a mistake to sour on Manhattan real estate in the long run.

Closed Sales

?Closed sales declined 4% annually compared to last year’s?eight-year record high.

?This quarter was the first time since the Fourth Quarter of 2020?that closed sales in Manhattan fell year-over-year.

Contracts Signed

?-?Contracts signed had a more significant drop than closings, falling 29% year over year.?The 2,576 contracts were the lowest figure since the Third Quarter of 2020.

?- The $3-5M price bracket saw the largest decline in activity,?down 49.7% year-over-year and 47.8% quarter-over-quarter.

?Inventory

?-?Inventory climbed 14.9% year-over-year and 2.1% quarter-over-quarter to just above 7,100 active properties.

?- New listings for the quarter were down 17.4% year-over-year?and 34.8% quarter-over-quarter, indicating that owners are?holding off on putting their property on the market amid the?potential recession.

My Views

Sellers →?It is important that while pricing your property, you do not compare sales from Q1 and Q2 earlier this year; rather, look at recent sales and active listings to get a sense of the current competition.?

The highest traffic and best demand will be in the first few weeks of the listings hitting the market. If after 6-8 weeks there is not enough traffic, it may be a signal to reduce your price to re-stimulate demand.

?Buyers →?Buyers have a good discount and leverage window open. Q3 report clearly shows a decrease in contract activity, and the Market Pulse has shifted towards a Buyer's market territory. However, this opportunity is there for the next few months, in my view. Because as Macro headwinds change and we prepare for Spring in 2023, the market is expected to shift back to more leverage towards Sellers. Right now, the best way to find an opportunity is to participate in the market and track listings and price cuts. This will give you a good indication of leverage and opportunities.

Brooklyn report

Queens report

Have questions about NYC market forecasts, trends, or anything else real estate-related? I'd love to connect.

Data Source: UrbanDigs, Compass, and Corcoran

The Sondhi Team?: Nishant is a Real Estate salesperson in Manhattan and Brooklyn and the Founder of the Sondhi Team, and his team specializes in Residential Real Estate. He is passionate about helping buyers and sellers navigate the New York market, save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to best serve his clients.