{02.2025} Anxiety Returns
Since Feb 19, S&P 500 is down 10%, a fast and furious downward correction from the growing confidence the markets exhibited after the election last year. Real estate often appears to be a slow-moving industry, with drawn-out negotiations and lengthy closings. But in reality it reacts just as quickly. Over the past three weeks, our team was deep in negotiations on several deals. Buyers who, just weeks ago, seemed ready to improve their offers suddenly hit the brakes.
We are in a very interesting market. On the one hand, inventory is lower. Manhattan’s total absorption rate stood at 6.5 months in February, a number I expected to be higher, given that December—historically the month with the lowest supply—came in at 6 months. This likely reflects strong buyer activity in December and January, which we also saw firsthand with our own clients.
On the other hand, the world again feels uncertain and shaky. Over the past two weeks, buyer inquiries have slowed. Our open houses last week still had better attendance than in 2023 and most of 2024, but no offers followed. The market feels like it’s in the midst of a fundamental shift in supply and demand—yet it’s also grappling with a fresh wave of uncertainty.
On a personal note, my oldest daughter has officially entered the tween years, bringing with it the joys of…intermittent shouting matches and tactical skirmishes. if any of you are navigating the same parenting adventure, I highly recommend the podcast Ask Lisa. Dr. Lisa Damour—though completely unaware of it—has become my partner in crime as I try to support a strong-willed 11-year-old.
Since Feb 19, S&P 500 is down 10%, a fast and furious downward correction from the growing confidence the markets exhibited after the election last year.