NYC Real Estate Market Predictions 2023
It’s time to dive into my NYC real estate market predictions for 2023! Here’s what I think will be in store for the new year.
Sales Will Get Off to a Slow Start, But Then Pick Up
The impact of higher interest rates will likely keep things quieter in the beginning of the year.
But news about price declines and more stable interest rates (more on that later) may lure more buyers off the fence. Tighter inventory will likely keep prices from falling too much. But sellers will need to be conservative about pricing. It won’t be the kind of market to “wait and see.”
Buyers in Brooklyn Won’t Really See a Lot of “Relief”
Brooklyn’s prices are likely to stay more stable than Manhattan. Inventory hasn’t grown much and that trend may continue, at least at the beginning of the year.
In fact, there may well be some year over year declines given the different interest rate environment. Sellers putting their homes on the market last year this time could still take advantage of a low interest rate to buy their next home. That’s not the case for many of them this year.
And while demand has lessened in the borough compared to last year, it’s still healthy.
Buyers will need to be prepared for competition when it comes to desirable apartments, especially townhouses, 2 and 3 bedrooms. But they likely won’t need to make decisions at the breakneck pace of last year. And there likely will be more opportunity for negotiation for listings that are less than ideal.
More “Normal” Times for Renters Ahead
The rental market is likely to be more normal for renters. Which is good news and bad news.
The good news is that they can look forward to not seeing the eye popping rent increases witnessed in 2021 and 2022. Pricing for apartments has since “caught up” from their 2020 declines. For the first part of the year, renters might also catch a break in terms of inventory, concessions and time to make a decision.
But the bad news is that prices aren’t likely to decline very much from their historic highs. And there will still be lots of competition. Especially during the spring and summer.
Interest Rate Stabilization Will Encourage Deals, If It Happens
If inflation continues to moderate, the Fed will likely change rates at a much more modest pace this year. That’ll calm a lot of nerves and introduce some much needed stability. And as more data comes out about the prices at which deals are getting done and sellers adjust, the market will get moving along again.
More NYC Real Estate Predictions for 2023
Check out this round up of links for more NYC real estate predictions from experts for 2023. And if you’re looking for a recap of NYC real estate for 2022, check out this post.
2023 NYC Real Estate Forecast (BrickUnderground)
A Housing Market Hangover (The NY Times)
What Should New York Homebuyers Expect in 2023? (Curbed NY)