Market Minute
MOONDOC MARKET MINUTE
October 2023
Hi Everyone,
We are in a bit of a holding pattern here as many are waiting for the rates to settle and for the market to find itself. Will it be a hard or soft landing? Signed contract activity for September 2023 lagged September 2022 by 22% Historically, that’s a pretty big drawdown. We have discussed ad nauseam here how inventory is restrained because sellers aren’t going to market because that would mean giving up the sweetheart interest rates they were able to secure in the COVID era.
While supply is down demand is also down which is why we aren’t seeing any hyper dramatic price action across the broader market, in spite of much higher rates. It is a tale of two markets with Brooklyn outperforming Manhattan and “prime real estate” outperforming what I am calling “flawed real estate.” “Prime real estate” being apartments and houses that are well located, family sized, move in ready, good light, while “flawed” apartments can be described as having at least one major detractor, such as needing work, small size, light challenged, walk up, etc.
Flawed real estate especially in Manhattan is really struggling while prime real estate most notably in Brooklyn is in some cases getting multiple bids and going over the asking price. There is significant opportunity for great deals for those with imagination and are willing to do some work, especially in Manhattan. The Brooklyn deals can be found by sifting through those properties that have been on the market for 120 + plus days and are in need of work.
Connect for proper representation.
