NYC market activity is slowing, but it’s all relative.
We had an incredibly robust Q1 2022. At the beginning of 2022, properties went to bidding wars after one open house. Gone in a day. Competition and fervor drove prices to increase by 20% in some neighborhoods.
In May, mortgage interest rates began to increase. The stock market was wobbly; people were losing money. Buyers burnt out by bidding wars were like, forget this, I’m going to Greece! Were you there, too? Everyone was in Greece this summer. Fatigue from all things pandemic added a push for people to go outside, enjoy themselves, and forget about real estate.
After Memorial Day, market activity slowed considerably. People were out in the sunshine, catching up with loved ones. Needless to say, summer 2022 was not an ideal time to list property.
The NYC market is typically seasonal, aside from pandemic influence. We see spikes in activity in Spring and Fall. In September, we saw a spike in market activity. It was reassuring to see some normalcy despite chaotic news headlines and general financial uncertainty.
Yet now we’re in a bit of a correction, as consumers navigate overpriced properties during this uncertain time. Many brokers don’t price property in line with nuanced changes in market behavior. They use Q1 2022 aggressive bidding-war data when pricing homes in cautious Q4 2022, despite consumer sentiment being totally different. These pricing errors cause properties to sit on the market without offers until the prices are reduced. We’re in this adjustment now.
Good news is if a home is priced strategically, in line with current market trends, you can still receive multiple offers and enjoy a quick sale. All of my listings since September have received multiple offers: 67% are in contract for more than sticker price, with an average increase of 8.3% (aka 8.3% above asking price). One of them was awarded Brownstoner house of the day and Top-Ten Listing in Brooklyn, which is lovely. (The sellers’ decor definitely had something to do with our press!) Link to Brownstoner