Market Update: Summer/Fall 2022

After 2022’s incredibly strong first quarter (some neighborhoods saw 20% growth), market activity slowed around Memorial Day. By June, mortgage interest rates had begun to increase rapidly, which caused otherwise motivated buyers to reconsider focus.

Spring’s aggressive bidding wars were hard to win with financing contingencies, which ~80% of buyers require to complete a purchase. Attempting to secure a dream home simply exhausted people. So in the light of more pressures — increasing interest rates and stock market volatility — most people attempting to purchase decided to take a wait-and-see approach.

Also, was everyone in Greece this summer?! People were out and about, as they began to feel more comfy with travel. Participating aggressively in the NYC real estate market just wasn’t on people’s minds. With the confluence of these factors, we saw a decrease in market activity over the summer. Prices didn’t fall off a cliff (it’s unlikely that’ll happen any time soon), but properties did remain on market longer than they would have in an average summer, and fewer new buyers entered the market.

In the past couple weeks I’ve seen signs of a strong Fall market on the horizon. We might be in for less frenzied activity and a slight price correction, given the incredible growth in Q1, but it seems likely that overall prices and demand will remain strong.

Photo by TravelScape

By Published On: September 6, 2022Tags: , ,