Home News Upper West Side Real Estate Market Bulletin, Second Edition – West Side Rag

Upper West Side Real Estate Market Bulletin, Second Edition – West Side Rag

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Dear Subscriber,

Welcome to the second edition of the Upper West Side Real Estate Market Bulletin. This is a monthly digital newsletter covering the state and direction of the local real estate market.

It features three unique aspects:

  1. Focus on the local Upper West Side residential real estate market.
  2. Identification and evaluation of key factors driving our market.When
  3. Plain and simple language that entertains our common reader.

Market overview

Our current market is declining in a cautious state. Sales volumes and prices are softening as the worrying market sees a deterioration in the forces driving property sales and price levels. This is explained below.

inflation

Domestic inflation has skyrocketed over the past year. The cost of food, gas and oil is forcing homeowners to divert money they would otherwise have spent on mortgages and down payments on now more expensive necessities. . As a result, demand for homes may decline, resulting in lower home prices and sales.

President Biden plans to visit Saudi Arabia to release its oil and gas reserves to global markets, but it is difficult to predict the success of this effort. Some economists suggest a global recession is unlikely. In any event, sustained high inflation will continue to weigh on the real estate market.

Disruptions to supply-side distribution channels due to Covid continue to manifest in inflation in price levels. These inflationary pressures are easing more slowly than expected, keeping interest rates historically high and challenging economic growth.

mortgage interest rate

Mortgage interest rates have practically doubled over the past year. This is largely because the Fed has over-funded the economy in an attempt to stimulate his Covid-19-hit economy, causing demand for commodities to outstrip supply, pushing prices higher. Since then, the Fed has realized its mistake and backed off from accommodative monetary policy, but mortgage rates have yet to ease, weighing on the real estate market.

political unrest

The midterm elections could lead to Republicans taking over the House and Senate. That could block Biden’s agenda for the rest of his term, including the January committee. But what impact will this have on GDP growth? Democratic administrations have historically posted higher GDP growth than Republican administrations, but there is uncertainty in projecting GDP performance. And we all know that uncertainty breeds omission when it comes to real estate transactions.

What do the tea leaves say?

For our purposes, tea leaves are graphs of UWS central selling prices and public list supplies. Both of these key indicators point to a continued downward trend since median selling prices hit an inflection point in February. June data confirms that trend.

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