Many of us are consumed by the tragic events unfolding in the Middle East and, quite frankly, around the world. In the interest of providing a very brief respite from the chaos, we thought we might share a quick state of the union on the NYC real estate market for the month of October.
Historically, October, the beginning of the last quarter of the year, sees a spike in contract-signed activity as Q4 is seasonally one of the busiest quarters of the year.
However, this October, we saw a 10.8% dip in contract signed activity compared to the average of contracts signed in October since 2003.
From October 1-31, 2023, a total of 1,459 sales listings throughout core New York City areas experienced price reductions, about 12.7% more than last month, as global instability has added more hesitation to the market.
Meanwhile, the volume of U.S. mortgage applications plummeted to the lowest in nearly three decades as interest rates hover around 7%, the highest since 2000. Loans that could be had for 2.75% in 2021 today cost over 4.5% more—leaving many buyers on the sidelines.
While these stats don’t seem like great news, times of global and economic instability are usually followed by windows of opportunity. Like right after 9/11, the 2008 recession, or even most recently post-COVID.
For sellers, slower market conditions further underline the importance of pricing strategically. For buyers, less competition on the market offers more leverage and an opportunity to buy at a more favorable price.
While others are sitting on the sidelines, waiting for mortgage rates to drop, if you’re looking, do the exact opposite: don’t wait.
It will be interesting to see where the fall market heads from here.
Wishing you health, safety, and peace.
