The Power of the Purchaser in Today's Market.
The winter months can be a very powerful time for buyers to step into the Manhattan/Brooklyn real estate market and purchase a home. Generally, the end of the fall/beginning of winter can be a great time of year to buy. This year, even more so, as the Fall 2022 market felt (was) much slower to sellers than last year, which is weighing heavily on sellers' minds at the moment. Therefore, negotiability is on the table in the 2022 holiday season.
During the fall, real estate activity was under a microscope — much more than in past years — mostly due to the economic downturn, the real estate slowdown and increased interest rates. That combination resulted in buyers holding off, and that's too bad. For them. Generally, winter months are always a good time for buyers to get serious about their purchase. Historically, locking in a sale during winter from the “leftover listings” that failed to sell in the fall can result in smart money purchases.
However, this year, sellers seem to be a bit more content at lower sale prices than in past years. Of course, it depends on the property, the listing price and how popular the listing is on the market. But most listings are languishing somewhat, (the average days on market rose over 5% from last year) and sellers are more vulnerable than in years past. Buyers should feel that they have some power right now. Interest rates are starting to stabilize and even dip a bit. Another reason buyers should act: At the time of this writing, Jason Richie at HSBC has the 30-year jumbo rate with no points at 5.578%. Not bad! Plus, if buyers can get some sort of discount off of their property’s asking price, it's a win-win!
I'm not really sure why buyers aren't out there in droves right now! I would be. For example, I had a buyer purchase in a new development, and the sponsor paid for all of his closing costs (I mean everything!) Plus, they took almost 3% off the sale price. Interestingly, the average negotiation off listing price is about 3% to 7%. And, the longer the property stays on the market, the bigger the discount off of the asking price.
Buyers: I know it's scary to skate out on the ice by yourself, but this is the time when there are good deals to be had and smart purchases to be made. If you like something between now and February 1, I can tell you you'll be a very happy seller in 5 to 7 years if you make an offer and lock in a price. After February of 2023, I think the word is going to get out that The Fed is not raising interest rates, and rates will trickle down. That will be coupled with new inventory supplies this spring. In NYC, rentals also play a huge role in the health of the sales market, and many are predicting a furious rental market come spring. If the U.S. economy can hold on and start to dig out, buyers are going to return, setting the stage for a robust spring market. That said, right now, I wouldn't say it's a full-fledged buyer's market, but it's definitely leaning in your direction! ACT NOW!
Real Estate in the News:
Global Trends Impacting Real Estate in 2023
Looking ahead to the new year, the annual report from PwC highlights the top factors that will drive changes to real estate. Macro forces of today will result in changes for real estate in 2023—from the sales pace and buyer preferences to city infrastructure and investor demand. Check out the article to read about it all, and get an inside peek at the top markets to watch.
Local Happenings:
OPEN NOW - January 2, 2023
Winter Village at Bryant Park
Bryant Park's Winter Village by Bank of America is back in NYC with holiday festivities and shopping and food at its holiday shops. Its 17,000-square-foot ice-skating rink that's free to use (if you bring your own skates) is always the highlight, but it's Winter Village in all its holiday spirit is a close second. This year, over 170 new and returning kiosks will be there for you to peruse through—all at one of the best NYC parks.
Click HERE for more details.
DECEMBER 31, 2022
Times Square New Years Eve
New Year’s Eve 2022 is almost here and 2023 is just around the corner! The biggest party in NYC is back in Times Square and you can attend the evenings' festive celebrations as the famous New Year's Eve Ball descends atop One Times Square. The celebration begins at 6pm with the lighting and raising of the New Year’s Eve Ball, and is followed by a spectacular lineup of events.
Click HERE for more details.
Lifestyle Tips and Tricks:
7 Best National Parks to Visit in Winter
Many people consider a National Park visit an essential summer trip—but don’t sleep on the same parks in the winter. Break out your winter gear and journey to these winter wonderlands.
How to Make Holiday Dinner Cleanup a Breeze
Do you ever feel like you spend more time cleaning up after a holiday meal than you do enjoying it? You’re not alone. Set yourself up for an efficient clean up and spend more time with friends and family. Try out these tips during the holiday season, and even use them for parties all year long.
25 New Year's Eve Desserts to Ring in 2023
Celebrate the start of the new year with something sweet! Whether you’re looking for a decadent showstopper or an easy treat, end your meal—and the year—on a delicious note.
