Welcome to 2023!
As I think back over the past year, a number of observations and themes come to mind in the markets I cover:
- Demand in Brownstone Brooklyn was very strong in the first half and still pretty strong through early November, particularly among first time home buyers and millennials,
- Supply was tight and has trended downward,
- Aggressive rate increases forced buyers to recalibrate and knocked certain buyers out of the market,
- Uncertainty around the economic outlook caused certain buyers to pause,
- Aspirational buyers unable to afford or compete in the current market were forced back into the rental market, contributing to increased rents,
- Prime properties continued to attract more relative demand and multiple offers (renovated, well priced and marketed, large, outdoor space, good location, virtual office, amenities, functional layout, etc.),
- Negotiating leverage generally shifted to buyers by year end resulting in a neutral/modest buyer’s market; however the amount of leverage varied substantially depending on neighborhood, property and situation,
- More cash and non-mortgage contingent buyers emerged,
- Financial buyers and developers facing higher material and labor costs were looking for higher cap rates on investment properties and making low-ball bids,
- Certain sellers were more inclined to pull their property from the market rather than accept a below market price,
- Strategies emerged to help manage higher interest rates (rate buydowns, adjustable rate mortgages, points, etc.),
- Discount purchase opportunities emerged for certain properties sitting on the market and for certain new development properties with developer/sponsors under pressure,
- Sellers with mispriced and slow moving properties had to consider price reductions and/or taking the property off market,
- First-time home buyers, upsizers and downsizers still want to buy,
- Bidding wars complicated the financial bridging of aspirational upsizers and downsizers,
- Low supply is likely to persist without a strong catalyst for sellers to sell, creating price support and a diminished prospect of steep discounts,
- Moderating views on inflation, recession and rate outlook have created some breathing room and potential for optimism in the new year.
We'll see how some of these things develop in 2023. I'm cautiously optimistic. We should have a better sense of direction in the next month or so.
In this month's report I've included some research, articles & activities I hope you'll find of interest. Please click the images below for more details.
Have a great month and 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 January. |
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|  Just Closed! Just helped my happy buyer clients close on this great condo in Park Slope. The apartment is a 3 bedroom, 3 bath duplex with ample private outdoor space in a great location. It offered them plenty of room for future growth and virtual office flexibility. They love their new place!
We’ll be listing their 2 bedroom, 1 bath, pet friendly co-op with private outdoor space in the New Year. If you think you might have interest, please feel free to connect with me. |
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|  Manhattan Market Report - 4Q 2022 After a very hot first half, things slowed dramatically during the last six months of the year. The number of closings in the fourth quarter was 35% lower than last year. Prices have also started to come down, with the median resale price 5% less than 2021’s fourth quarter.
That being said: i) Q4 2021 saw a record number of closings, so it’s not surprising there was a significant decline over the past year, ii) closings in the fourth quarter of 2022 were very similar to those at the end of 2018 and 2019, so the market has essentially returned to pre-pandemic levels and iii) declining prices indicate that sellers are motivated to negotiate, which should keep the market active in 2023. |
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|  2023 NYC Housing Market Predictions What Renters, Buyers, and Sellers Can Expect |
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|  Mortgage Refinance Demand Surged Mortgage Refinance Demand Surged 6%, As Rates Dropped To The Lowest Level Since September |
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|  The Economy Consumer Prices Rose Just 0.1% in November |
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|  Recession in 2023? Some economists believe the Federal Reserve can avoid a recession by raising rates just long enough to avoid squashing growth. |
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|  Changing Property Managers Finding the Right Professional for Your Community
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|  Renovation Ideas Full-on Cobble Hill Townhouse Gut Transforms Unfinished Into Impeccable
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|  How to paint Kitchen Cabinets like a Pro Some tips and tricks on how to paint kitchen cabinets like an expert. |
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|  Interior Design Small-Space Hack New Yorkers Swear By |
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|  Where to go ice skating in NYC For winter time fun, head to these spots for ice skating in NYC |
|  Brooklyn Pols Call For Repeal Of Prospect Park E-Bike Ban A group of Brooklyn pols are petitioning the Parks Department to end its ban on electric bikes in Prospect Park, arguing riders are being unfairly punished or even ticketed while just trying to get home or to work. |
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