{December 2021} Will Higher Rates Dampen Prices in 2022?
Just like that, the curtains of 2021 came down. For me, this has been a year of great hope and achievements. It was also a year when my mother got sick, but I couldn’t be with her. It was also a year when my girls started to be back with their friends and then again, playdates were cancelled and school was closed abruptly. But these gentle souls rolled with the punches with a smile on their sweet faces. They continued to lead me forward. I would like to thank you for reading for another year. I look forward to sharing the new adventures 2022 will bring!
The NYC real estate market took a slight breather in November and December. After record transaction volumes month after month from March to October, the market finally slowed down for the holidays. Prices steadily increased but did not reach the 2016 peak levels yet. A fellow broker just called me today saying her buyer moved out to the suburbs last year but was now having second thoughts and wanted to come see a brownstone we were selling in Brooklyn. This great debate of whether the pandemic was going to change NYC forever continues. A big theme for 2022 is the mortgage rates. I have had clients asking whether the increasing rates will dampen the market’s upward trajectory. While the rising rates will push some buyers into the waiting game, our market is slightly under supplied. As long as this supply and demand dynamics continue to play out, I would expect the prices to continue to rise.
Good Read
Is Soho about to become more residential?
The NYC real estate market is at an interesting crossroad. On the one hand, we feel a lot of pent-up demand from buyers who have been watching and waiting for rates to go down.