What’s really happening in our real estate market? With tons of press articles and market chatter, it’s tough to keep up with the latest updates, but I’m here to share my behind-the-scenes perspective on NY Real Estate. Here’s what you need to know: 

A Balanced Market for Buyers & Sellers
Though sellers have had the upper hand for 2021, we are now in a more balanced market. Supply levels are still low, but rising mortgage rates and lower affordability limit how much buyers who rely on financing can pay for a home. Transactions at all price ranges are happening – but buyers definitely have more room for negotiability thanks to less competition, which ultimately helps to level the playing field. This won’t last long… once mortgage rates go back down, we’ll see more buyer competition and therefore, higher prices once again.  
 
With this equalized playing field, sellers will need to adjust their offer expectations as we won’t see many bidding wars given there aren’t as many active buyers in the market. While I expect this trend to continue, I don't foresee a systemic drop in home values in NYC. Why you may ask? Because…
 
Not All Markets Are Created Equal
As shared in my Q2 report earlier this year HERE, NYC is one-of-a-kind. With our unparalleled real estate market, country-wide trends often do not apply to us. Though some parts of the US housing market experienced overinflation for the past couple of years, due to buyers flocking to the suburbs in search of remote work, more space etc., we in NY shut down for business for full 3 months during this time (2020) with almost 0 sales. 
 
My Advice?
Evaluate your 2023 and long-term housing goals – do you want to continue living in your current rental apartment which ultimately pays the owner’s mortgage? Talk to someone who understands your long-term goals and how you can use our ever-changing real estate market to your advantage and shop for a good mortgage rate! Banks are competing for business now. 
 
Personally in my real estate investments, I like to follow the famous words of the Oracle of Omaha: "Be fearful when others are greedy and greedy when others are fearful" ;)
 
Stay tuned for next month’s update. I’ll be back in the new year with need-to-know market updates!

Sincerely,
Daniel

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