{July 2024} Dawn Is Finally Coming
It feels like dawn is finally coming. The real estate market in NYC has been in a tough spot ever since rates started to rise in June 2022. Transaction volumes quickly dropped in the second half of 2022 and stayed muted throughout 2023. Then talks of possible rate cuts started to go around in Jan 2024, and as a result, our market staged a minor comeback. The beginning of the year was busy and hopeful, with more buyers making offers. The hope went away in March and April, along with dimming hopes of rate cuts. For the broker community, the first half of 2024 could be characterized as frustrating. Many contracts went out, but many of them would not get signed. If we said 80-90%of the contracts were signed in a normal year, that rate was like 50-60% in 2024. We were all much busier than last year, but the overall number of closings was actually lower than last year. Now it seems that the market is again readying itself for a rate cut. And we did start to get more inquiries on our listings in the last two weeks.
One interesting trend to mention is the divergence of experience of the NYC market and the suburban markets around it. If we look at what percentage of listings ended in bidding wars in the second quarter of 2024, Long Island led the pack with 60% of listings there going into bidding wars. In Manhattan it was a mere 7%, or virtually nothing. This speaks to the lasting trend of remote work. When people only need to commute to the office 3 times a week, it makes the commute much more tolerable to more people and more people choose to move out of the city. Before the pandemic, the price difference between NYC and the suburbs was at its historical high and it has been narrowing after the pandemic.
Summer is time for travel! We went to Shanghai and Guangzhou last month, partially to seek treatment for my older daughter’s scoliosis. We discovered she had it last September and have been battling it for almost a year now. If you or someone you know faces the same challenge, message me! We have learned a lot and are happy to share.
New Construction
In May we brought your attention to a project called The Hendrix House in Murray Hill. It has since come on the market and been selling very well, with close to 30% of the inventory spoken for. It’s designed by the famous interior designer Paris Forino and has 12 floors and 56 apartments.
Studios: starting 895k
One-Bedrooms: starting 1.23mm
Two-Bedrooms: starting 1.67mm
Get in touch to talk about why Murray Hill is on the rise and why this project is selling so well.