The Weekly Contract Signed Report released this week by Brown Harris Stevens shows that signed contracts dropped 16 percent from the previous week and are 26 percent lower than a year ago. Buyers have more leverage to negotiate today than they did six months ago. As I pointed out a few weeks ago, the window of opportunity to buy is now but may not last very long.
Also, it’s important to keep in mind that the market activity may pick-up post-election and as interest rates stabilize, which in turn could very well strip buyers of any negotiation power. One of the deterrents to buy now for some people is rising mortgage rates, which is understandable; but it is also worth noting that rates aren’t expected to go down. Kevin Leibowitz at Grayton Mortgage recommends locking in your rate now and says, “If rates continue to go up, then it’s the right call. If rates drop in the future, you can refinance.”
This is just one of several tips compiled by BrickUnderground for buying a
co-op or condo in NYC as mortgage rates continue to rise. Some of the tips seem like common sense such as “increasing your down payment” and “negotiating the sales price”, however there are some helpful workarounds that you may have not considered such as “working banks that may that have special mortgage rates for banking customers or who offer float downs” or “cutting cost down by looking at properties with lower carrying costs or common charges”.
If only we had a crystal ball, we’d know when to jump on an opportunity. Since that isn’t the case, we must rely on what market analysts report, historical patterns and simply pay attention to the market at all times, for those serious about buying or selling. That is one of the reasons for this weekly email—to ensure you are always current on what is happening in New York City real estate whether you choose to work with me or someone else. Either way, I am available to speak with no obligation to commit to working with me, should you have any questions.
Finally, to any of you in Florida, please stay safe.