In his latest report, Greg Heym, Chief Economist at Brown Harris Stevens, noted that economic growth in the second quarter surpassed initial expectations, indicating no recession on the horizon for this year. This is encouraging news given that inventory and closings are down—likely due to the summer slowdown that typically occurs around this time of year.
Jonathan Miller, president of Miller Samuel says that the decline in sales is not only attributed to high mortgage rates but to limited inventory as well. This is happening across the country, not just in one area. New condo listings in Manhattan fell by 25.8 percent year-over-year, while the Los Angeles single-family market experienced a 38.7 percent year-over-year drop in new listings.
Miller says that inventory isn’t reacting to the drop in sales as it normally does, which is why pricing has remained relatively steady in both the Manhattan and Brooklyn markets. He adds that we shouldn’t see an uptick in activity until past Labor Day.
Meanwhile, co-founder and partner at UrbanDigs Analytics, John Walkup, drew up an interesting analysis on the Manhattan and Brooklyn markets based on open house activity. They use an Open House-to-Contract Signed ratio to assess the market’s health. According to his findings, the Manhattan market is showing signs of cooling off, while the Brooklyn market is experiencing strong demand. He also shares what these dynamics mean for buyers and sellers in the respective boroughs. It’s certainly worth a read.
We will be paying attention to how the housing market reacts to the recent economic news, and what impact that will have on the Fall market, if at all. Until then, please reach out with any questions. I am happy to get on a call to discuss your real estate needs with no obligation to commit.