Good Morning,
I hope you're having a great summer!
During the month of July, there was a noticeable slowdown in the Brooklyn real estate market with less new supply and less overall buyer activity. Despite lower inventory, contract signings kept pace with new listings resulting in price support. As a result, we have not seen the softening in prices that some buyers were expecting.
In addition to seasonal factors, like the traditional market slowdown in July and August, macro factors like rising interest rates and the prospect of further inflation and recession have influenced buyer behavior. Some buyers have moved to the sidelines waiting for more clarity in the fall. Others have been as active as they had been pre-summer, albeit with less inventory to choose from.
According to Zillow's tracking of national 30 year fixed-rate mortgages, current rates average 4.91%, representing a decline of close to 90 basis from their high in mid-June. That's welcome relief to some buyers. Rates may rise further as the Fed continues its inflation fight, so the recent dip may be an opportune time to lock in long term rates. During July, I observed a decent amount of rate shopping among buyers with some also moving from fixed to adjustable rate mortgages to better manage monthly payments.
Based on market liquidity, Brooklyn still appears to be a seller's market, although not as strong as earlier in the year. It also seems that, while negotiating leverage is shifting somewhat from seller to buyer, many sellers are inclined to wait for their price or take the property off market before selling at a significant discount.
Despite that, there might still be opportunities for some buyers on dated listings that have been stuck on the market for one reason or another. Additionally, opportunities might open up in certain new development properties where sponsors are under pressure to move product and make deals happen.
In this month's edition of my market update, I have included events in and around New York City during the month of August (see Inbox Concierge below), market reports for Manhattan, Brooklyn and the New Jersey Shore and various articles I hope you'll find of interest. Click the images below for more details.
Interesting times! I'm sure you have a lot of questions whether looking to sell, buy or rent. Feel free to contact me at any time with questions or for real estate assistance.
All the Best,
Steve
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| Licensed Real Estate Salesperson |
#1 Top Agent - BHS Park Slope 2021 Top 5 Agent - BHS Brooklyn 2020, 2021 America’s Best Agents - RealTrends 2021, 2022 |
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|  NYC Events Click the image above for curated events in and around New York City during the month of August. |
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|  Brooklyn Market Report – Q2 2022 The Brooklyn apartment market remained hot in the second quarter, with the average sales price hitting a record high of $1,085,658. While 4% lower than a year ago, the number of closings was still at a very high level, and pricing gains were seen for both co-ops and condos compared to last year.
Please note that the Q2 2022 closings in this report were negotiated in a much different environment than that of today. On average, the contracts for the second quarter were signed in early February of this year. At that time, mortgage rates were averaging 3.6%, and the S&P 500 index was at 4,500. By the end of the second quarter, mortgage rates had climbed by more than 2%, and the S&P 500 was at 3,785.
Closed sales are always a lagging indicator of the housing market, and this report is no different. Most of the closings last quarter were negotiated before the spike in rates and correction in the stock market, so please view these results with that in mind
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|  Jersey Shore Market Report - August 2022 Just chillin... 'Cause down the shore everything's all right...
With summer in full swing and beach on the brain, I thought you might appreciate an update on activity in the New Jersey Shore from Asbury Park to Mantoloking. Supply is back and rates have dipped, so it may be time to start thinking about that second home at the shore! |
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|  Manhattan Market Report – Q2 2022 The data from our second-quarter report seems to indicate a very strong Manhattan market. The average apartment price is 9% higher compared to a year ago, and the number of closings remained high. Time on the market is at its lowest level since the third quarter of 2018, while sellers received the highest percentage of their last asking price in over six years.
All of that is true, but a report based on closed sales is always a lagging indicator of the market. Apartments closed in the second quarter of 2022 had an average contract-signed date of January 30, 2022. Back then, 30-year mortgage rates were averaging 3.55%, and the S&P 500 was at 4,516. By the end of the second quarter, mortgage rates had risen by over 2%, and the S&P 500 was at 3,785.
What this all means is that the deals included in this report were negotiated under very different circumstances than what we see today. To get the best perspective on the current state of housing, I would recommend looking at more real-time indicators, such as our weekly Contract Signed and monthly Inventory reports. They will provide the most current and useful information.
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|  Brooklyn Townhouse Report – H2 2022 The average price of $1,414,475 was 9% higher than the first half of 2021. There were 2% more closings than a year ago. |
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|  Where are mortgage rates heading? It's possible that mortgage rates have topped off’: Latest tumble a sign of hope amid jumbled-up housing market |
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|  NYC in 2027: What the city will look like five years down the road From fully-legalized cannabis shops to autonomous public transport vehicles to more modestly-designed and scaled real estate developments, New York City is in for some major updates and upgrades over the next five years. |
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|  Aging in Place In the past five years, adults in the U.S. age 55 and older made financial gains, and many feel they will have a financially comfortable retirement, according to Freddie Mac surveys. In addition, 66% of them expect to age in place, which may further contribute to the housing supply shortage. |
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|  A Perfect Storm For New York City Real Estate Buyers? Get Ready! |
|  Tourists Are Skipping Manhattan In Favor Of Brooklyn, Study Finds Brooklyn saw big gains in tourism numbers while Manhattan's numbers plunged 14 percent in June, a new study found. |
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|  Brooklyn Folk Festival to return this fall with full lineup Brooklyn Folk Festival is back this fall for its 14th anniversary. This year’s lineup will include Bonnie “Prince” Billy making his BFF debut, and returning folk fest favorites Amythyst Kiah, Nora Brown, Jerron Blindboy Paxton and more. |
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