Elegran Insights
Published in

Elegran Insights

Elegran Manhattan Market Update: November 2022

Chart Courtesy of UrbanDigs
Data Courtesy of UrbanDigs
  • Because supply and pricing became markedly overheated during 2021 and H1–2022, Manhattan is currently a strong buyer’s market. Remember, a buyer’s market means, in part, that prices are moving in the favor of buyers and that they should be rewarded for their patience.
  • Although the current market favors buyers, demand is still at or above its pre-pandemic average. So, there are ample consumers in the market to move inventory; however, sellers need to set their expectations at pre-pandemic levels, not at 2021 levels where demand and price inflation were at record (and unsustainable and, ultimately, unhealthy) levels.
  • Sellers who are not commanding their desired sales price should consider renting their home instead, at least for a year or two, and capitalize on the strong rental market and high rents.
  • Although peak rental pricing has plateaued, rents remain significantly inflated as decades high — and still climbing — mortgage rates force buyers out of the for sale market and into the for rent market.
  • Strong rents and humbled pricing create continued opportunities for cash-investors (who are either liquid, or able to trade out of another real estate investment) to invest in Manhattan real estate.
  • Manhattan presents relative value compared to national markets that experienced steep price appreciation over the last 24-months, now overheated with little to no room for near-term growth.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Elegran | Forbes Global Properties

Reinventing the customer journey in NYC Real Estate since 2008. Exclusive Member of Forbes Global Properties 🏙️ #PreciselyYou