{May 2022} More Buyers Entering Waiting Mode

This has been a difficult month.  Again and again, when the adults fight, our children bear the consequences.  When will adults learn to compromise? 

The New York City real estate market had a slower month in May.  Transactions were a bit harder to complete, as the combination of higher rates and lower stock markets really started to take its toll on buyers.  I had two buyer clients, who walked away after the contracts were fully negotiated.  Some buyers shifted onto the sidelines to wait for a clearer direction of which way the market was headed.  On the other hand, the inventory constraint remained intact.  Our total supply in May remained low at 5.5 months.  I think this is a pause to the continuation of price recovery for NYC.  Historically, the price peak of the next cycle is higher than that of the previous peak.  We have barely come close to the peak levels of 2015.  NYC didn’t have the 50% appreciation from 2019, which many other markets experienced.  In my opinion, our recovery still has legs.  

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Good Read

Here is an economist’s two cents on the current state of the Housing Market