NYC home sales could decline in 2022

Brown Harris Stevens CEO Bess Freedman (Brown Harris Stevens, iStock)

After 2021 marked a banner year for the housing markets of Manhattan and Brooklyn, home sales in New York City could fall in 2022, said BHS CEO Bess Freedman.

Freedman told Bloomberg TV’s Surveillance that higher interest rates and housing supply problems could spur the pace of change among the city’s sales.

“The Fed announced that interest rates will rise maybe two to three times next year so we can see a little bit of a slowdown,” Freedman told Bloomberg. “Also, supply has fallen because demand is so increased.”

The broker manager’s prediction reflects similar projections from Jonathan Miller, who compiled a November market report for Miller Samuel on behalf of Douglas Elliman.

“The inventory continues to collapse, which is why we expect continued price growth into the new year,” Miller said. The right deal.

Property data from UrbanDigs published earlier this month said that through December 5, listings on the Manhattan average for the 2008-2018 period exceeded 18 percent. But buyers depleted supply at an even faster pace, putting new net inventories below zero for nine of 11 months this year. Net new inventory in November was negative by 861 units.

Meanwhile, UrbanDigs noted that listing discounts fell consistently throughout the year for the first time since mid-2015. Prices rose in pace, leading to a banner year for Manhattan’s luxury market.

Supply and demand problems across the country have spurred the housing market. A report from Redfin showed that the number of homes in the US market hit a historic low in the week ending November 28th. There were fewer than 539,000 active listings that week, a 26 percent year-over-year decline.

Strong demand and weak supply resulted in a median selling price of $ 360,375 across the United States in the first four weeks of November, surpassing a record going back to July 25th.

[Bloomberg] – Holden Walter-Warner

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