{July 2021} Diminishing Inventory Problem
Summer is such a wonderful time. I still remember the lazy afternoons during summer breaks, when I was going to school. I would oscillate between boredom and relaxation, my mind wandering free. This July I took the kids swimming and hiking. We saw some really funny animals and did the Treetop Adventure in a downpour (unplanned) in the Bronx Zoo. Hope everyone is enjoying their summer!
The NYC real estate market also took a slight breather as we headed to late July and entered the traditionally slow month of August. Slightly fewer listings went into contract in July, compared with March to June – but still a higher than usual 1350 in-contract listings. Total supply of available homes continued to decline to 9.5 months, the same level as March 2020 right before the pandemic. This means we have worked through the inventory built-up during the pandemic, but inventory is still higher than the equilibrium of 7.5 months. The rental market has absolutely gone crazy. Almost every listing gets multiple offers as soon as it hits the market. No more wondering if people are moving back to the city.
The NYC market has been well supported by domestic buyers. Are the international buyers back? Here are some feelers.
The NYC real estate market was the tale of two cities in October. Total transaction volume ticked higher, even though rates moved higher and sentiment was tense. Most of our new clients were understandably quiet. But quite a few of our repeat clients, the real estate veterans, were busy putting deals together.