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Decrease in Mortgage Rates Sparks Activity
December 8th New York City Real Estate Rundown
Thomas Moran
December 08, 2023
Market Pulse
In a high-rate environment, NYC's luxury real estate market remains resilient, with 17 contracts signed for properties priced above $4 million. Condominiums emerged as the favored choice, outselling co-ops by a ratio of 11 to 2. The market also witnessed four townhouse sales. Notably, the total weekly asking price sales volume reached a substantial $150.56 million, reflecting an average asking price of $8,856,706. These transactions were spread across different neighborhoods, with 5 sales each on the East and West sides, 6 sales in Downtown, and 1 sale in Midtown. On average, properties spent 458 days on the market. This week's performance showcased a notable increase in contract signings compared to the previous week. Condominiums continued to dominate the luxury market, reaffirming their popularity among buyers. The diversity of sales across Manhattan neighborhoods indicates a broad interest in luxury properties throughout the borough. The total weekly sales volume also reflects robust activity for a high rate environment and highlights the market's resilience.
UrbanDigs
Key Statistics for Last Week's Luxury Real Estate Contracts:
Total Weekly Asking Price Sales Volume:$150,564,000
Average Asking Price: $8,856,706
Median Asking Price: $6,575,000
Average Discount from Original Ask to Last Asking Price: 12%
Average Days on Market: 458
Top Sale
Brown Harris Stevens
Last week, Manhattan's luxury real estate market witnessed a remarkable transaction with the sale of 10 East 75th Street, a magnificent townhouse, for $23.5 million. This seven-story, 19.5-foot-wide property is a marvel of urban luxury living, boasting an expansive 10,463 square feet of refined space. It includes six well-appointed bedrooms and 5.5 bathrooms. The townhouse features an elevator, ensuring effortless navigation through its numerous levels. The grand parlor floor, with its soaring ceilings and expansive living room, offers a perfect blend of elegance and comfort, ideal for both lavish entertaining and quiet evenings at home.
The master suite is a sanctuary of luxury, occupying an entire floor and offering a sumptuous bathroom along with a private study, providing a peaceful retreat from the city's hustle and bustle. The beautifully landscaped roof garden adds a touch of greenery and serenity to the urban landscape. This property, having undergone a comprehensive three-year renovation by renowned architect Peter Pennoyer and designer Victoria Hagan, blends modern amenities with classic architectural details, creating a unique and highly coveted living experience. This sale not only reflects the continued allure and dynamism of Manhattan's real estate market but also highlights the sophistication and elegance that define luxury living in the city.
New York City Pushes for More Affordable Housing
Office of Governor Kathy Hochul
In New York City, several initiatives are underway to combat the housing shortage, with a focus on affordable options. One of the key projects is the transformation of the Creedmoor Psychiatric Center in Queens, which is being redeveloped into a mixed-use project with over 2,800 housing units. This initiative aims to provide affordable homeownership and rental opportunities, mainly targeting families with incomes up to the area median income. Another significant project is the redevelopment of the Lincoln Correctional Facility in Harlem. This project will create a 105-unit affordable housing complex, specifically aimed at households earning between 80% and 100% of the area median income. Such initiatives are crucial in providing affordable housing options in the city.
Additionally, Mayor Eric Adams is focused on reviving the 421a tax incentive program, which is vital for stimulating new residential developments in the city. This program is expected to increase the housing stock significantly and contribute to the overall affordability of the market. Furthermore, the Accessory Dwelling Units (ADU) Pilot Program is an innovative approach to housing expansion. This program allows homeowners to add secondary residences, like backyard cottages or basement apartments, to their existing properties. This not only increases the housing supply but also does so within the existing residential areas, minimizing the need for extensive new construction.
New York Building Congress
These combined efforts are expected to have a significant impact on the New York City real estate market. By increasing the supply of affordable housing, these initiatives are anticipated to stabilize soaring real estate prices and rents, making the market more accessible for a broader range of people. The approach is also likely to ease the competitive pressure in both the sales and rental markets, diversifying the types of housing available and potentially stabilizing market dynamics in the long term. This comprehensive strategy is a significant step towards addressing the housing availability and affordability issues in one of the world's most dynamic urban real estate markets.
Decrease in Mortgage Rates Sparks Refinancing
The Federal Reserve's recent decision to maintain rates at 5.25% to 5.5% aims to stabilize prices while ensuring economic growth. Recent reports suggest a possible slowing of rate hikes, in order to boost economic activity. These rate adjustments by the Fed are closely watched by investors and have a direct impact on mortgage rates, influencing consumer decisions in the housing market. The recent decrease in mortgage rates to around 7.29% illustrates this effect, with notable changes in refinancing activities.
Bloomberg
In New York City, the recent decrease in mortgage rates to approximately 7.29% has led to a notable increase in refinancing, showcasing homeowners' responsiveness to favorable lending conditions. However, this reduction in rates has not significantly boosted home purchasing activities due to the city's unique market conditions: high demand, limited inventory, and stable property prices. Despite a general slowdown and an overall shift to a buyers market, the New York City market has not experienced as steep a decline in activity as the rest of the United States. This resilience is further highlighted by a surge in all-cash transactions and investor activity, capitalizing on lower listing prices and the advantageous buyer's market.This resilience in the New York City real estate market, amidst fluctuating economic conditions and Federal Reserve policies, exemplifies the city's unique value proposition as a safe heaven of capital for investors.
Rocket Mortgage
Pick Of The Week
For those of you who might not know, beyond the bustling world of real estate, I'm quite the NFL fan! As we dive deeper into the season, I thought, why not sprinkle a little fun into our newsletter? Every week, I'll share my "Pick of the Week" for sports betting. While my expertise is firmly in real estate, I think this will be an enjoyable twist for our readers. But remember, it's all in good fun and purely for entertainment – always wager responsibly!
Disappointing, right? Marquez Valdez Scantling's drop was a missed opportunity that's hard to ignore.The Chiefs were the right pick, and it all came down to MVS making that catch. As for this week, I've got my eye on several games for my pick of the week: Falcons, Browns, Rams +7.5, and Seahawks +10.5. While I see potential in all of these matchups, my official pick of the week goes to the Eagles at +145. It seems like a trap line, as Philedelia has the much better team in my opinion. However the public is hammering Dallas for some reason. I understand how special Dallas has been at home but I firmly believe the Eagles have the stronger team and won't let two losses in a row happen. Jalen Hurts is a proven winner, and I have full confidence that he'll demonstrate that on Sunday night at AT&T Stadium.
Eagles +145 vs Cowboys
Record 7-3
Agree or disagree that they should be in the playoffs, Alabama's victory over Georgia was a massive win for our Alabama future. Those who acted were able to secure the Crimson Tide at +800. They currently stand at +210, gearing up for a challenging clash in the College Football Playoffs against the Michigan Wolverines.
Bonus: Alabama National Championship +800
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