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It seems clear the initial conflict in the Middle East created enough uncertainty to delay our Spring market; but a Spring market it was, the strongest in years. Likewise, it pushed its momentum deep into our summer. We’re just now, 3 weeks into July, starting to feel the moderation in deal volume, as people are off on vacation and recharging.
Manhattan Supply
It’s important to note, the market’s shifting…or perhaps better said “has” shifted. Supply, which is always constrained, is off nearly 10% from where we were last year at this time. The issue on this front is that, it does not seem as if we’re going to experience any material influx of inventory any time soon. Yes, we’ll have a seasonal bump in the Fall and again in the Spring; but will we ever reach the levels we saw years ago? That’s TBD.
Monthly Contract Activity
And consider this, with that table set (fewer homes to choose from), monthly contract activity has increased 14.5% since last year at this time…Wow! This is a clear sign that the market demand is there. With rents continually rising, increasing numbers of people are turning towards the purchase option. And the simple supply and demand principle will put upward pressure on prices.
So if you’re interested in buying, getting in early will serve you. On the other hand, if you’re selling, the longer you can hold on the more you might get. But that comes with a caveat: are you upgrading? Are you downsizing? Where are you going? Remember, you’re a buyer too!…and this market dynamic is universal.
After 10 years of blah…flat pricing…we are now at the bottom of the mountain, looking up. It will be slow and methodical, but to get to the next plateau, we’re going to ascend.
Anyone interested in buying or selling, should be rolling up their sleeves to determine whether the time is right to sell or if there’s a home/investment property out there for them. Who represents you matters…your best investment is often in the broker you choose; find someone with experience, who you feel you can trust.
