{January 2022} The Seller’s Market Has Finally Arrived
A belated Happy CNY! If you were born in the year of the tiger, you are courageous and energetic. You love a challenge and are prepared to take risks. After almost two years of playing defense, I wish everyone a year of great adventure and exploration!
The NYC real estate market solidified into a seller’s market in January. We talked about how bidding wars were becoming more common in the last couple of months. But this month we clearly felt the pinch of tight supply. When a buyer waited till the weekend to go out, some of the properties that were confirmed earlier in the week would be gone by Friday. The supply gauge helped explain the picture: back in October, our market had 7.7 months of for supply. By December, supply had shrunk to 5.3 months. Compare this with Oct 2020, when we were at the depth of pandemic, the market had almost 20 months of supply. It took a while, but the table has finally turned from a buyer’s market to a seller’s market in NYC.
Good Read
The material and labor shortage have caused the renovation costs to skyrocket. And for that reason, I am having a tough time selling a townhouse that needs a gut reno. This article tries to explain why we are experiencing the Great Resignation while Europe is not.
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.