The Monthly Mag - July 2022

Hello!

Hope you are having a nice summer!

Below are the SERHANT. Q2 Market Reports.

The Manhattan market continued its upward climb in the second quarter, driven by deals that initially entered contract in late 2021 or the first quarter of 2022. All pricing metrics (average price, median price, average PPSF) increased. Discounts were down, at just 4.9% off the initial list price, compared to 9.7% in the second quarter last year. However, contract activity, which is the best realtime gauge of market performance, dropped 18.7% from the record level in 2021. The decline in contract activity increased each month into the quarter as rising mortgage rates and stock market volatility began to impact the market. Still, with inflation at its highest level in 40 years, real estate is viewed as a hedge, and the number of contracts signed is still running stronger than every other second quarter since 2016. Properties spent an average of 135 days listed, down from 181 in the second quarter last year. As we enter Q3, we expect activity to slow further as market volatility, rising rates, and the upcoming election create headwinds. Still, appropriately priced, turnkey homes, will sell well.

The Brooklyn housing market continued its upward march in the second quarter with new borough-wide price records and a record number of sales. The story may sound familiar: four of the last six quarters set new median price records and five of the last six quarters set new average price records. There were 3,290 sales, an increase of 2.4% over the second quarter last year and the highest total ever recorded in a second quarter. While sales were up marginally, total dollar volume surged 19.3% to just over $4.1 billion, the highest second quarter figure to date. The increase in dollar volume relative to number of sales illustrates the willingness of buyers to purchase pricey pads at never-before seen levels as the cost of housing in the borough skyrocketed. Inventory remains low, correlating to a drop in contract activity. Going forward, we expect the prices to stabilize as rising mortgage rates, market volatility, and a limited number of turnkey townhomes slow velocity.

I will continue to keep you apprised of the ever-changing market. Especially with the Fed raising interest rates again by 75 bps to combat inflation, the market will continue to be dynamic and keep us on our toes.

On a very exciting note, we just opened our SERHANT. Hamptons House in Water Mill! If you are out east this summer please stop by and say hello!

As always, should you need any help buying, selling or renting in New York or elsewhere, it would be my pleasure to serve you.

All the best,

Maggie