Real Estate Market in November 2022

Insights, trends and market directions

​We are in a buyers’ market ... with a twist

• As of September 2022, the market shifted to favor buyers. There are more units for sale than units going into contract.
• Inventory level is very low: we only have 5.3 months of supply in Manhattan. In Nov 2019, we had 8.2 months of supply.   
• Listings in contract are down 34.2% from Nov 2021 but they are approximately at the same level as usually in fall season pre-pandemic.

The twist: sellers are doing great too

• Median sale discount is 3.9% - very mild and is a result of low inventory.
• In Q3 2022, 18.1% of listings were sold over ask - means bidding wars. 
• Median sale price in Manhattan is still above October 2019 level.
• BUT: we are dealing with lower sales volume overall.
• However, deals are happening as life is: upsizing, downsizing, relocating events with urgent timeframes are still here.  

​Luxury $4m+ market and new developments

• Deal volume is the same as it was in 2016-2018.
• Many developers lowered their prices and offer concessions.
• Prices vary but start from $2,000 psqft (Manhattan) to get into a newly built residence.
• There are still developments with tax abated units AND buildings with green technologies that will eventually save you money.
• In October, the median rent on new leases in Manhattan increased 13% from September – which makes investing in nyc very lucrative with the right strategy.

​Mortgage rates have uncertain predictions

• After four consecutive increases, mortgage rates fell down slightly as of November 17th to 6.61%.
• Lenders offer many options to make mortgage more affordable. Potential refinancing costs typically 2-5% of the loan amount.

​Rents are slightly down but due to seasonality

• Between August and September, the Manhattan median rent went from $4,100 to $4,022, a decline of 1.9%.
• Brooklyn median rent decrease is almost invisible, from $3,500 to $3,495.
• Listing inventory went up for the first time in 11 months. 
• Bidding wars decreased from 18% to 14.7% - still signaling strong rental market.
• In the last year, NYC rent has increased by $730 compared to 2021.

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​Final Thoughts

• Market fluctuations, economy uncertainty, predictions - it is always happening.
• Every market has its opportunities.
• Each personal situation is unique and needs a strategic approach.
• I will be happy to be your partner in any real estate journey you are up to. We have a fantastic team of mortgage brokers, attorneys, appraisers, contractors, designers, and anyone you can think of.
• Let's connect!

About the author:

Alena Sakovich
Licensed Real Estate Agent
Certified Negotiation Expert
R New York
Mobile: 917.930.9925
Email: [email protected]