Michael Holt | November 7, 2022
Holt's Monthly Market
There's no question that NYC is an expensive place to live. Whether you're looking for a studio apartment or a multi-bedroom condo, you can expect to pay top dollar compared to other places in the world for even the most basic of amenities. But is it truly a buyer's market? That depends on how you look at it. If you compare NYC to other major metropolitan areas, then the answer is yes - buyers definitely have the upper hand. There are more apartments on the market than there are buyers, which means that prices are relatively negotiable (see below for the average discount amount). However, if you compare the current buyer's market to past buyers' markets, then the answer is less clear. Prices are still high and finding a good deal can be tough however they're still out there (great real estate agents really earn their value here). The chart above shows the current market pulse to be down 10% from last month and nearly 50% year to date. We've just dipped below a neutral market as you can see so prices and discount levels aren't reflected yet (however there are some great deals we are finding for our clients at Living New York Team).
If you're thinking about buying an apartment in NYC, it's important to know whether you're in a buyer's market or a seller's market. This can have a big impact on the price of an apartment, as well as the negotiating process. The chart above shows the monthly contract activity since 2008. The average number of signed contracts is 911 with the current number of contracts signed being 731 this October down 42% from last year. The concern isn't last year as much as the historical average. 2021 was a booming year due to the strong economy and low rates we had. Higher rates and other uncertainties have caused buyers to take a pause and sellers to be hesitant resulting in less inventory and contracts signed.
If you're considering buying an apartment in NYC, it's important to keep these things in mind. A buyer's market can be a great time to purchase an apartment, but it's important to know what to look for. The Living New York can help you navigate the NYC real estate market and find the perfect apartment for your needs.
It's no secret that buying a home is a huge investment. In addition to the mortgage, there are also taxes, insurance, and maintenance costs to consider. So it's no wonder that many people dread the thought of entering the real estate market. However, there are also some advantages to buying a home during a buyer's market. One of the biggest benefits is to be purchased at a price below where the residence previously traded or below comparable places with better historical value (in other words, great deals!) Interest rates can very well be high during these periods as high interest rates lead to lower real estate prices. The stock market is affected much faster while it can take time for real estate prices to adjust. This is what we are experiencing now. The idea is to "buy low, sell high" and you do so by waiting for asset values to drop. Even if you're buying with a high-interest rate you'll be able to refinance later. This is why we say "Date the rate and marry the price". However, it's important to remember that a buyer's market can also be a risky time to buy a property. If the market takes a turn for the worse, buyers may find themselves stuck with an overpriced home that they can't sell which is why it's best to live in the residence for 3-5 years. Don't forget the tax benefits that come along with real estate. Remember a time of high interest rates generally is a good time for investors as not only are asset values lower than normal rental rates are typically higher. It's a great time to diversify from stocks that typically go through a free fall before stabilizing. For more information on this topic, please contact The Living New York.
If you're thinking about buying a new place, now is a great time to take advantage of the current market condition and at least start looking. Just be sure to work with an experienced real estate agent, like the ones at The Living New York. We know the ins and outs of the NYC apartment market, and we'll make sure you find the perfect place to call home with a great investment play.
For sellers what to do in a buyer's market depends on their situation. If you need to sell for the maximum price ASAP or in the immediate future or want to purchase a smaller residence you'll want to list immediately and price below the market. The reason is that prices will continue to fall. Pricing strategy is important here as you do not want to find yourself chasing the market down. However, if you're looking to buy a larger residence you should absolutely wait. This is where the phrase "trading up" comes from -- sell your place for a lesser price but make up the difference from the great deal you've bought when purchasing the larger, more expensive residence. Another way to look at it is that you're liquidating one investment to purchase another that will give you a better long-term return. The plus is that you'll get to enjoy living there along the way. If you're curious as to what you're residence might be worth or nervous about what to do, please email us. Click here to visit our success stories page which will show you testimonials and pictures of how we continue to make a difference. if you're looking for a free valuation click here
If you're thinking about buying or selling property, then you need a good agent on your side. interest rates are high and the market is favoring buyers, so it's more important than ever to have someone who knows what they're doing. Our team at Living New York has years of experience helping people buy and sell apartments in NYC, and we know how to get the best possible price. We'll work with you every step of the way, from finding the right property to negotiating the best price. We're passionate about giving our clients the best experience and achieving success. Contact The Living New York.
The current state of the real estate market is a buyer’s market, and this presents unique opportunities for buyers in New York City. If you know how to identify when you are in a buyer’s market and what the pros and cons are, you can take advantage of lower prices, more negotiating power, and better terms from sellers. However, it is important to have a good agent on your side who understands these conditions and knows how to help you make the most of them. Are you ready to start planning a strategy to take advantage of the market? For sellers, what to do depends on your situation. It's vital to be strategic and work with a professional with excellent testimonials.
Comment below or Contact Living New York to learn what makes us top real estate agents in NYC or check out our guides, Success Stories, and more!
Michael Holt & Nicole Hay
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This is especially important for sellers who are currently listed on the market, as the active season may be shorter than usual.
The Hay and Holt Team is recognized across the industry for their innovative marketing approach that maximizes visibility and exposure for their seller's properties and for their ability to target and secure incredible opportunities for their buyers.