In Manhattan, Brooklyn and the Hamptons, May sales transactions were significantly slower than the fierce pace a year ago as more inventories began to enter the market, according to a report released Thursday by Douglas Elliman. ..
“Be consistent across everything [Manhattan] Inventories are increasing for all property types in the market, “said Jonathan Miller, CEO of appraisal firm Miller Samuel and author of Elliman’s report. “What we are seeing now is the first expansion of supply. I think this has a lot to do with mortgage rates.”
In May, the signed Manhattan Cooperative Agreement increased overall inventory by 0.5% and decreased by 6.9% year-on-year. On the other hand, condominium contracts increased by 17.8% and 2% for new listings. In most condominium prices above $ 2 million, new signed contracts declined, but condominium prices between $ 4 million and $ 4.99 million increased by 22.7%, with last month’s sales. There were four over $ 20 million, compared to one in May 2021.
“It’s a mixed message,” Miller said. “There is no direct pattern that the high end is weaker or stronger than the low end. It was very choppy. There could be a slight setback, either with a decline in overall contracts or an increase in contracts lower than expected. There is only. “
A similar move was seen in Brooklyn, with overall new contracts down 6% and inventories up 12%. However, for condominiums priced between $ 1 million and $ 1.99 million, signed contracts increased by 33.1% between May 2021 and May 2022.
“Like Manhattan, all three property types [co-ops, condos, and one-to-three-family homes] Inventory has expanded, “Mr. Miller said. “It’s still a relatively active market, but we haven’t seen the 2021 madness.”
In the Hamptons of Long Island, tight inventory and pandemic-related demand for villas are squeezing the infamous market, with May contracts down 37.9% year-on-year and new listings up 14.2%.
According to Miller, the decline in activity in each market is likely due to rising mortgage rates rather than diminished buyer interest.
“There have been so many bidding wars that the decline in contracts is not about lack of demand,” Miller said. “There is still an unusually low supply.”
“”[But] The introduction of higher rates is being watched by all participants, “Miller added. “As a result, the market is breathtaking.”