At the beginning of the year, concessions were the rage and many people gained extraordinary deals on their home purchases. For the past 8 months, as the economy recovered, discounts dwindled and a seller's market has emerged. This is the busiest Fall we’ve seen in a very long time and as one season predicts the next, we are planning for a BIG SPRING.
The luxury market (properties above $4 million) saw its strongest Thanksgiving Holiday week ever and also broke the highest record of weekly contracts signed, with 67 contracts totaling over $600 million in sales volume the week prior. Overall, the entire market nearly doubled from $2.1 billion in November 2020 to $3.9 billion this past month. And even in December, we are seeing a rise in signed contracts during a typically quiet holiday season.
Bidding Wars Have Increased
The large amount of sales volume means that sellers are no longer guessing what the right price is, as many were coming out of the initial phase of the pandemic. This is resulting in more homes being “priced right” and nearly 1/3 of all homes selling at or above their asking price compared to a year ago when that figure was less than 15%.
Discounts and Choice Shrank
For those lucky enough to find a motivated seller before other buyers do, discounts continue to shrink from the mid-to-high single digits of last year, to around 2-3%. That goes for choice as well, with new contracts signed outpacing new listings and available homes dropping 9% during November.
Low Interest Rates Remain
Historically low interest rates helped aid in a post-pandemic economic recovery. However, economists and banks are forecasting increasing rates in 2022. Now is a great time to lock in remarkably low financing and payments that you could benefit from for decades.
We are now half way through December and New York real estate is only picking up. As we look ahead to 2022, we expect this momentum to continue as foreign buyers, who have been largely absent from the market due to recently lifted travel restrictions, return to take advantage of the favorable current market conditions.
If you are considering a purchase, now is the time to act. If you’re thinking of selling, let us help you prepare for a successful Spring launch.