October 2022 / Q3 2022 NYC Area Real Estate Review
I hope you find this October 2022?/ Q3?2022?NYC Area Real Estate Review?useful and encourage you to share it with clients, colleagues, and friends who may find it interesting.
Rising interest rates continue to gnaw at the Big Apple’s real estate market. During the second quarter, we conveyed a shift with regard to what we were seeing on the ground in New York City.?This quarter, we are seeing the data that starts to support this shift.
Although the median sales price for CONDOS and COOPS increased year-over-year by 3.6%, compared to the second quarter of 2022, the median sales price fell 7.6%.?The average sales price fell 9.3% compared to the previous quarter. The total number of sales decreased 3.7% versus the last quarter, and 18.4% versus the third quarter of 2021.
In the third quarter of 2021, there were 5.1 months of apartment supply on market. For the third quarter of 2022, that number stood at 6.3 months.
Finally, the listing discount stood at 7.3% this past quarter. A year ago this number was 5.6%.
For every point the interest rates rise, a buyer loses approximately 10% of their purchasing power. If you were an active buyer last fall, your interest rate has more than doubled and your purchasing power has fallen by 32.5%.?If you were an active buyer in the late winter or early spring, your interest rate has risen by two points and your purchasing power has fallen by 20%. Although market balancing is expected in the coming months, we do not expect similar headwinds to what we saw in 2009 – 2010.
In keeping with the confusion surrounding the current market, Brick Underground offers two perspectives:
Reviews, referrals, and recommendations are the lifeblood of the real estate?business.?If you have had a positive experience working with me?in any market?and would be so inclined, I would appreciate your review:?
Lastly, we understand that this market may?be confusing for buyers and sellers alike. Don't let these changes confuse or intimidate you!?My team and I are more than happy to spend time with you to discuss the overall market and your specific situation.
Q3?2022?Manhattan Sales
Despite the decline from last year’s sales surge in?Manhattan,?levels remained significantly higher than in pre-pandemic?conditions. Median sales price rose annually to the second highest on?record for a third quarter. Sales and average price per square foot fell to the?second highest on record, also for a third quarter. Listing inventory was up nominally from the prior year's?quarter and pre-pandemic levels. COOP sales fell year-over-year for the first time in 6?quarters, and CONDO sales fell year-over-year for the first time in 7?quarters. Luxury price trend indicators expanded year-over-year for the?fourth consecutive quarter. Luxury listing inventory expanded year-over-year but remained well?below pre-pandemic levels. New development listings accounted for one-third of all luxury?listings, consistent with the decade average. New development sales declined sharply from last year's unusual high but were?significantly above pre-pandemic levels. The market share of new development sales was well above the?decade's quarterly average.?
In?Northern Manhattan, listing inventory expanded as sales decreased across property types. For COOPS and CONDOS, sales and median price declined year-over-year for the first time in 7?quarters but remained well above pre-pandemic levels. Listing inventory slipped from the prior quarter’s high to the second highest on record. For townhouses, all price trend indicators fell year-over-year for the second time in 3 quarters. The number of sales fell year-over-year for the first time in 7 quarters.
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Q3?2022?Brooklyn, Queens, and Riverdale Sales?
The median sales price in?Brooklyn?declined for the first time in 8 quarters to?the second-highest level. Bidding war market share rose to a new high, reaching nearly 1/3 of all closings. Listing inventory declined for the second quarter after rising annually for 5 quarters?
The median sales price in?Queens?rose annually for the eighth consecutive quarter?but fell short of reaching a new high, as it has 5?times in the past 7 quarters.?Bidding war market share rose to a new high, reaching nearly 1/4 of all closings.?Listing inventory declined annually for the fifth straight quarter remaining below pre-pandemic levels.
In?Riverdale,?which includes Fieldston, Hudson Hill, North Riverdale, and Spuyten Duyvil, the median sales price rose to a new high as sales slipped for the first time in nearly 2?years. Bidding war market share increased to the third highest on record, almost 1 in 5 sales, as listing inventory declined annually for the third time in 4 quarters.
September 2022?Manhattan, Brooklyn & Queens Rental Market
Manhattan?median rent continued to level off as luxury rentals pressed higher.?The market share of rentals with landlord concessions fell to its lowest?level in more than 6?years. The net effective median rent for existing rentals slipped to the?second-highest level for the first time in 8?months. Luxury net effective median?rent increased to a new high for the third time in 4 months. The entry threshold for the?luxury market expanded annually for the fifteenth consecutive month.
Rental prices in?Brooklyn?appeared to peak in August, moving sideways in September?for the first time in 11 months. The market share of bidding?wars continued to account for 1 out of 5 new leases. Listing inventory expanded?annually for the first time in 11 months.
In?Northwest Queens,?median rent increased to new highs as the?number of new lease?signings fell for the sixth month. As a result, the landlord concession market?share declined, continuing its trend for fourteen months.
The Real Deal:?Rent-flation: Housing powers increase in cost of living
If you are interested in buying or selling properties in any of the above?regions, I would be happy to help you or refer you to an agent in your market of interest.
Feel free to reach out directly if you have any questions as well.
Wondering About Your Home's Value?
Then try our?value estimation tool,?What is Your Home Worth??Keep?in mind that these?models may?have wide?swings, and never replace the property-specific valuation that our team?offers.