The January 2022 NYC Real Estate Market Report is out for Manhattan revealing three interesting trends emerging in the market.
Trend #1 In January the data showed a shift in market activity from core markets, such as The Upper East side, The Upper West side and Downtown, to lower priced sub markets such as Upper Manhattan, Midtown and the Financial District. This is a trend I’ve been watching for some time now. If you go back six months, core markets and submarkets had very similar pricing. As a result, buyers naturally chose core markets. Now that inventory is no longer available at the same price and the differential between core markets and submarkets has returned, price sensitive buyers have returned to submarkets. This is a signal that sellers who may have been motivated to sell by Covid have found their buyers and the market has returned to a more normal pricing structure.
Trend #2 Sellers should pay very close attention to one important statistic from the January report. Days on market declined year-over-year for the tenth consecutive month to a three-year January low of 153 days. If your property has been on the market significantly longer than 153 days, without an offer, you might have an issue. Many buyers are reluctant to take on apartments which need significant work because of supply chain disruptions. If your apartment needs renovating and you don’t have the cash on hand, ask me about Corcoran’s program to support sellers. The other issue could be that marketing strategy needs tweaking. Is your marketing focused on what is truly important to buyers these days? Buyer preferences have shifted in the past two years.
Trend #3 Here is another interesting trend highlighted in the January market report. Year-over-year, contracts signed over $2M increased this past January, though tight inventory at the low-end contributed to a drop in sales under $2M. If you are a buyer looking for a property under $2 million, you may want to revisit your wish list and see if you can be more flexible. Interest rates are expected to rise in a few months and giving a little on what you expect to find in your home could end up being a financially wise decision.