The first half of the 2018 real estate season is over and the numbers are in.
Inventory is High
– Brooklyn inventory reached an all-time high.
– Manhattan inventory reached the highest level since 2011.
Sales prices started to Cool…slightly
– Overall Brooklyn prices stagnated….however…
– The Brooklyn townhouse market remains strong up to $4M.
– Desirable Brooklyn properties are still commanding multiple offers.
– Manhattan prices dropped 3% since last year.
– Queens was the only borough where prices increased.
Rental Prices are Up
– Brooklyn and Manhattan rentals reached an all-time high.
What This Means For My Buyers
Shop Around this Fall:
After a typical mid-summer lull, StreetEasy predicts
a large new wave of listings which will increase options for buyers.
Be Prepared: Despite high inventory we are still seeing competition among well priced, highly desirable and/or well marketed properties. Work with your Buyer’s Agent (that’s me!) to make sure you’re prepared to close a deal when you find your dream home. Prepared buyers could find they have more negotiating power as motivated sellers get nervous about moving property.
Don’t Wait TOO Long: Although it might be tempting to wait and see if the prices drop even lower, the NYC market is complicated and the buying process is deeply emotional. Now is the time to lock in the lowest interest rate to stretch your dollar as far as possible. If you have a FICO score of 720 or more and can afford a downpayment of 30% or more, you will qualify for the very best rates available. You are already starting to have a bit more leverage, particularly with listings that have been sitting on the market for more than a few weeks, which is the peak time frame during which bidding wars are most likely to occur.
If you’re serious about finding a home, take advantage of this buyer’s market NOW and realize the benefits of long-term investment in NYC’s real estate market. Find a space where you can live comfortably for 5-7 years so that you have more control over when you sell. Given historic Brownstone Brooklyn area trends, you are likely to reap a profit on your investment.
What This Means For My Sellers
Time it Right: If you are looking to market your home, list sooner rather than later (and as soon as possible after September 1st). Appreciation rates have slowed. Compounded with rising interest rates, new tax laws, global uncertainty, and stock market fluctuations, we are starting to see a leveling of the market overall. Most buyers are bidding more conservatively, and some are postponing their search, which can lead to a surplus of inventory, putting you in a position to compete for buyers’ interest. There are still plenty of motivating factors for buyers to make a move, and the market remains active with buyers seeking to expand their families, explore new job opportunities, upgrade their lifestyle, downsize, and more.
Brooklyn homes are spending more time on the market at a median 53 days
. Pricing is always critical, but becomes even trickier in a transitioning market. You don’t want your listing to go “stale” and face multiple price cuts, so evaluate your selling goals and active competition, and price accordingly. I can help you analyze comparable sales data and advise you candidly about market trends, including the optimal price and time in which to list your property, and any upgrades that will help facilitate your sale.
Look Better than Your Competition: Stylish staging, gorgeous photos, and targeted marketing is even more critical in a buyer’s market to ensure your property stands out as a highly desirable property, even for the pickiest buyers. Make sure to highlight your home’s best features and mitigate issues that might give buyers a reason to move on.
Erica Keberle | Brooklyn Real Estate Agent
Determining the “right” price for selling or purchasing a home is part analytics and largely a matter of experience; it’s more an art than a science. If you’re feeling puzzled about your right price or how to make your home look amazing for a sale, use the below form to contact me. Pricing and staging consultations are always on the house (pun intended)!