We Need More Inventory…Who Wants/Needs to Sell?
The great return (to NYC) might be hitting a speed bump due to the Delta virus concerns, but it will likely be temporary. Seasonality returns as many have taken the opportunity to get away.
As most are speeding back to town to secure living arrangements for the Fall, the rental market has taken a complete turn. Whereas it was a “dumpster fire” just 6 months ago, bidding wars and scarce availability has become the narrative.
Conversely, for the first time in a year, the accelerator has eased on the sale market…but that doesn’t mean that it’s slow. As per UrbanDigs data we are still seeing an average of over 300 contracts/week over the past month. Remember that in normal times, 250 contracts/week would be considered a robust and healthy marketplace, although the frenzy has decelerated, we are far beyond that “normal” pace. July saw 1,267 contracts signed; compare that to the seasonal average for July over the past nine years of 887.
The activity is based in a path back to normalcy, people going back to work, record low interest rates, sellers adequately discounting prices…especially at the high-end etc. These factors, coupled with the domestically repopulated city and the yet-to-return foreign buyer are signals that there’s longevity to this surge in activity. Buyers should realize the favorable position they are in for the time being, particularly if the goal is to own for 3-5+ years.
Please don’t hesitate to reach out to me if you would like to strategize how best to maneuver this market for your particular circumstances. It requires building a team of mortgage brokers, attorneys etc. I have the resources, the experience and the desire to help. Have a great finish to summer and I will report back in September.
While demand remains very strong for life in The Hamptons, many of those that want-to-be are finding it extremely difficult to realize this as a reality. Everyone can see the headlines that sales have slowed, but it’s only because the inventory for property has dwindled substantially. It has been musical chairs for great homes. Yes, “homes”…because these are no longer just investment properties and/or a vacation spots; these have become the second piece of one’s “co-primary residence.” With people working hybrid schedules (in and out of the office), these residences are no no longer just a luxury, but an essential part of life, here and in the city. Consequently, some have considered building anew; however, like most places throughout the country this option is fraught with innumerable delays, headaches and premium pricing…this becomes a last resort, especially considering the immediate gratification mentality of our great country.
Sellers have become extremely aggressive on price; but they have to be careful. When sellers are too aggressive they bid away their “sellers market” advantage. Properly priced properties are flying off the market with multiple offers. The worst thing a seller can do is overprice. Overpricing only serves to sell your competitors properties.
As a buyer, you need to know how to identify the right opportunity for you and when it makes sense to jump in…or not. Everyone’s circumstances are unique. Like Manhattan, one needs good representation to successfully maneuver the nuances that exist in this unique marketplace. Let me know if you need help.
Hamptons’ & North Fork 2nd Quarter (2021): click here
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