Welcome to the Spring 2024 Upper Manhattan Real Estate Update. This is the most active and exciting market we have seen since 2021.
Interest rates and economic uncertainty impacted both the Townhouse & Condominium markets over the past two years, but Upper Manhattan is now recovering and we are seeing a significant uptick in activity
Let’s take a look at both the Townhouse and Condominium markets:
Townhouse Market – Incipient Recovery: Seller discounts are serving as a critical catalyst in getting the Upper Manhattan Townhouse market back on track –over half of current listings have been discounted since launch, by approximately 15-20% of the initial price (Graph 1, below).
Market sources also predict the Federal Government is planning to lower interest rates up to three times in 2024.
These two facts combined are making Townhouses a lot more attractive to well-informed Buyers currently than they have been for two years or more.
Insight: The turnaround has already started but will be an eighteen-to-thirty-six-month process.
However, we are already seeing more activity than in 18 months, with Buyers going into contract with cash or flexible term mortgages for 3 to 5 years.
Condominium Market – Awaiting New Developments
In 2022, the Upper Manhattan Condominium Market benefited from new developments, low entry price points, and high rents, and set record numbers in terms of both sales and volume.
However, this scenario was not sustainable, and following these sellouts, the market is now lukewarm pending interest rate decreases and upcoming condominium developments.
Related: Browse articles about Upper Manhattan Real Estate Update content on the site.
Insight: There are multiple new developments approved/underway, driven by both Public (NYC) and Private entities, paving the way for the next Bull market.
The next wave of sellouts is already on the horizon.
Market Outlook
Let’s take a moment to summarize these thoughts:
- In the Townhouse Market, smart Buyers are grabbing the 15-20% discounts while they are on the table, hoping to refinance later with better rates.
- Quality 20-foot Townhouse properties hitting the market soon – this inventory is not usually available in an upward-trending market.
In Conclusion
When we look at investors, sellers, and renters, we see different paths for each. Investors, it’s an investor market! But investors still have to look at how the long term affects the long term. In a buyer’s market, they have to decide how much risk can they afford. Sellers have to decide how long they can wait for the right price (as the clock ticks). Renters may want to look long-term for long-term tenant agreements.
Resources
- The Greater Harlem Real Estate Board, https://ghreb.net
- Harlem Community Development Corporation, https://esd.ny.gov
- Harlem Lofts, https://harlemlofts.com/
Robert ‘Robb’ Pair
Robert ‘Robb’ Pair, Founder and President, Harlem Lofts Inc.,. Harlem Lofts is a boutique real estate firm incorporated in 2002. A freelance real estate writer with Harlem World Magazine. https://harlemlofts.com/.
Photo credit: 1) Harlem Lofts. 2) Chart, Harlem Lofts.
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