Douglas Elliman warned New York City agents to advise sellers to consider price adjustments in preparation for a chilling market.
By email to staff obtained by GenuineAlfred Lena, the company’s sales director, mentioned raising interest rates and future softening of the economy.
“If possible, it’s best to stay in this direction rather than’chase the market’,” Lena writes. “Sellers may want to consider price adjustments sooner rather than waiting to confirm their approach.”
The signed contract data contained in the email shows a slight dip across the Manhattan and Brooklyn indicators. In the first two weeks of June, contracts signed by Manhattan fell 34% year-on-year. Sales volume fell by 21%, but medium selling prices rose by nearly 14% and discounts were 3%.
Manhattan sales are more affected than Brooklyn sales, Lena said in an email.
Brooklyn’s signed deal has been the same since early June last year, but sales have fallen by 12%. The median selling price rose 3% and the discount fell 3%.
“Douglas Elliman is a data-driven company,” an Elliman spokeswoman said in a statement. “We use this and other data from Jonathan Miller to communicate marketing and sales strategy and pricing recommendations.”
“We are confident that current interest rate activity will help attract more buyers to the market, so we believe that less ambitious pricing and DE is in the right position,” said a spokesman. I added.
The securities industry is already beginning to feel the effects of rising interest rates, in addition to inflation and market chills.
Earlier this week Compass and Redfin were fired 450 and 470 Each employee, citing economic uncertainty.
“As a leader in the real estate industry, you’re witnessing current economic trends shaping before they hit other economies, so it’s no wonder that the economic environment has consistently deteriorated in recent months. Robert Trefkin, CEO of Compass, emails the staff.
This week’s average 30-year fixed mortgage rate 6 percentTwice as much as just a few months ago.