The housing market downturn didn’t spare the Big Apple.
High mortgage rates and low demand from buyers depressed sales in New York City in 2022, according to a new report by real-estate agency Coldwell Banker Warburg.
“Buyer caution reasserted itself through all price ranges as increasingly anxious sellers went through the five stages of real-estate grief,” the report stated.
The market first went through denial, with sellers refusing to believe that their property couldn’t fetch the price they had in their heads.
Then it went through frustration with marketing, with sellers believing that advertising more would entice buyers.
Sellers then decided to bargain, resisting price reductions, but still trying to figure out what buyers wanted in order for them to bite.
That frustration was channeled into firing the original agent, believing them to be the reason why the seller wasn’t getting good offers.
And the final stage of grief among sellers in New York City was to accept price reductions. Despite reluctance from sellers, “most properties during 2022 have required price reductions of at least 10%,” the report stated, “and some far more.”
Meanwhile, in the rental market, some of the price pressure is also expected to ease up in 2023.
Median rents have already cooled off in the city as compared to the fall. According to data from Zillow
the monthly median rent in New York, N.Y. was $3,350 in December, which is down from $3,500 in August and September.
And more units are expected to hit the market, which will help renters further.
The supply of new apartments in New York is expected to lead the nation in 2023, according to separate research by Jay Lybik, national director of multifamily analytics at CoStar Group
New York is expected to add 25,000 new apartment units this year, Lybik wrote. Second on the list is the Dallas-Fort Worth market, which is expected to add 19,700 apartment units in 2023.
Are you a home buyer or trying to sell your property? Do you have thoughts on the housing market? Write to MarketWatch reporter Aarthi Swaminathan at [email protected]