Closing Out 2022
We have seen interest rates balloon over the last quarter, scaring some buyers out of the market and others to re-evaluate their price point. Other buyers remain focused on their price range, hoping for and in many cases now influencing negotiability. Where just a year ago many properties entertained multiple interested buyers and, in many cases, inflated pricing, they are now seeing less interest and slower movement. Buyers were motivated by the consumer demand from low inventory and the appeal of low rates, offering propped up purchasing power. Buyers were willing to face competition and pay a premium for product.
No single factor created our current real estate environment. But the Fed’s rate increases to combat inflation have certainly made significant impacts, particularly in the lower price point market segments. But while rates went up dramatically, we also experienced the steepest decline in 40 years for rates on the average 30-year fixed mortgage in November. Rates have come down. They will continue to fluctuate and will go down further.
For buyers right now, perspective on our environment is crucial to understand opportunities and the benefits of our current conditions. We see several factors that will play well for the active buyer this month and going into the new year.
Last month we addressed the need for understanding mortgage product options, as lenders react to current conditions and meet buyer need for lower monthly outlay and lower down payment options. This month and in the few months ahead, we expect serious buyers to remain engaged and to have foresight to take advantage of a market that is offering choices, less competition, absent fellow buyers who are less focused with holiday obligations as well as sellers who are tuning in to the need for proper pricing.
It's sensible to think a serious buyer would want to take advantage of being amongst only a few buyers or in some cases the lone buyer for a property, rather than fighting a hoard of other buyers. There is advantageous pricing for a lot of those current buyers. It makes good sense for them to buy now at an appealing price and refinance their loan product later at a more appealing rate. But a lot of those buyers who could take advantage of current conditions have consigned themselves to the hoard of buyers who are taking a break, for the holidays or for a while.
Manhattan Market Activity
Highlighting our market's past 30 days
Our month's featured listings on the market.
Dumbo / Brooklyn
2 Beds / 1 Bath
Kensington / Brooklyn
1 and 2 Beds Units
Various layouts and Price points
Forest Hills / Queens
1 Bed / 1 Bath
Upper West Side / Manhattan
19 Beds / 11 Baths
From the cool and eccentric to reserved and irreverent -
Our month's pick of what's happening in New York City.
If you haven't already, you should:
The Brooklyn Museum
Explore the fascinating and edgy universe of the French designer, whose innovations continue to influence the design world.
Now through May 7, 2023