Brown Harris Stevens CEO Bess Freedman was right when she told
Mansion Global back in early January that the NYC real estate market is “going to be a little challenging in the first quarter and maybe into the second, but I think we’ll rebound and start picking up again.”
Last month's sales activity for both the condo and co-op markets was down roughly 50 percent from the previous year for the month of January.
This comes as no surprise as we saw a
35 percent decline in closings coming out of Q4 last year, and analysts were expecting this slowdown to carry over into the new year. The sluggish market had an impact on January inventory as well, which was down 9 percent from the previous month according to the
recent report from our in-house economist, Greg Heym. The supply shortage is one of the reasons we’re seeing the drop in activity, according to real estate appraiser, Jonathan Miller, CEO of Samuel Miller, along with the state of the economy and high interest rates.
The way I look at it is there is light at the end of the tunnel. As Bess predicted early on, the market will eventually normalize and pick up again. Spring—real estate’s most active season—is just a month away so it will be interesting to see how the market performs in the months ahead as we lead up into summer. If you have any questions or would like to discuss your real estate goals,