It’s time to take a look at the NYC real estate market update for Q2 2022. To view the report for the previous quarter, click here.
To view the full reports, visit the links below:
The Manhattan sales market was strong in the second quarter of 2022, but there’s signs of an impending slowdown. This isn’t too surprising given the headwinds that the market is currently facing – rising interest rates, recession fears, high inflation and global turmoil.
The median price for the borough saw both year over year and quarter over quarter gains of 4%, coming in at $1,246,000. The median was pushed higher thanks to more sales over $5 million.
Closed sales also saw both annual and quarterly gains – up 9% versus Q2 2021 and 14% versus Q1 2022, respectively. And days on market continued to slide (down 31% versus last year), showing strong continued buyer interest.
Nonetheless, the “cracks” showed themselves in signed contracts, which were down 18% year over year.
Across the East River, prices also continued to rise. The median price for Brooklyn stood at $840,000, an all time high driven by a record number of sales over $2 million.
Although the market in the borough continued to show lots of strength, there was a marked slow down compared to 2021. Closed sales were down 14% year over year, and signed contracts were down 20% year over year.
But inventory continued to remain at low levels (down 4% compared to Q2 2021). And buyer interest remained strong, with days on market down by 26% compared to the same time last year.
Although the market still seems to be humming along for the time being, windows of opportunity may be opening up for buyers.
Rising interest rates have started to sideline a lot of would-be buyers. This means that buyers still in the market will face less competition. But rising interest rates are a double edge sword, since buyers are going to have to contend with less purchasing power as a result.
Sellers – especially in prime areas with prime property types – are likely to retain an edge when negotiating. But it’s now more important for them to try to price ahead of the market. They shouldn’t wait for the numbers to “play out” given that closed sales are a lagging indicator.
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