CONDO SPECIALIST READING MARKET DEMAND

As a Condo Specialist in your neighborhood we wanted to share some insight regarding 3 market indicators. Don’t worry – it’s not as complicated as it seems. Corcoran makes their data and market research hands on, allowing us to keep our pulse on the market’s shifts and furthermore being able to advise You. We know the NYC market holds some of the most savviest investors and buyers, but there’s always something new to be shared as the skyline continues to change. Did you know there are 3 ways Real Estate Agents translate what’s happening in the market?  

• Current Manhattan Condo Inventory, according to Corcoran 3,400+ apartments are currently on the market as of today.

  • That’s a lot to choose from!  With investor friendly advantages such as pied a tier opportunities, tax write offs, and lower price points, condos in Manhattan are a viable option for all.

• Days on market

  • Did you know, analyzing the amount of time an apartment sits on the market indicates whether or not the market is balanced? Days on the market is a key indicator of whether consumers demand exists or if the market is flooded with too many options.  It’s important to also note that real estate is also seasonal. In fact prices and demand is higher in the spring/summer months as compared to the winter and fall.

• Pending Sales

  • Is the momentum in the market showing an uptick in demand or a declining interest? The pace of apartments going into contract is a pure measure of demand, and by tracking contract activity in real-time we can follow the flow of money into the economy through real estate transactions

Here's an example of market seasonality. You'll notice that following President Trump’s election the average days on the market for most units increased. Mortgage interest rates increasing and bond yields surging, tightened the money supply into the economy. Essentially money would not be as affordable to borrow as it was during the Obama administration, borrowers and those financing to purchase apartments in NYC had to reevaluate their debt to income ratios, and currently are experiencing doubt as to invest in purchasing. This shift shows that demand is decreasing, and price points will have to adjust or apartments will sit longer on the market.