2022 started in a pandemic-fueled economic euphoria. The stock market was at its peak and New York City real estate prices was climbing with it. The year began with interest rates under 4% and bidding wars. But as 30-year mortgage rates jumped towards 7% and the stock market declined we saw sales volume drop from its April peak.
Since January 2022 a host of assets have been in decline: The S&P 500 retreated by 20%, the NASDAQ declined by 32%, and Bitcoin dropped by 65%. Given the strong demand to live in New York City and higher liquidity requirements to purchase this local real estate market's dip has been visible at ~5% but modest. Right now we're seeing more Seller negotiability and fortune favoring aggressive offers from our Buyers.
Performing well this summer were New York City Landlords who saw double-digit increases in rents and the mass return of New York City residents olde and new. Subway ridership is at 66% of where it was pre-pandemic which is a large improvement from the beginning of the year. Although recession looms, the city feels livelier than ever as locals, tourists, and commuters make this holiday season sparkle like olde times once again.
Wishing all of my clients a beautiful New Year. I am deeply appreciative of your trust and confidence in me with your most important assets. If you find yourself on the move to either purchase, sell, or rent a new home myself and the team will be here to help.
Best,
Corey
