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October 2023 Market Recap

While October was lackluster (especially on the lower end of the market which is more sensitive to financing), many are eyeing end-of-year price cuts to spur activity between Thanksgiving and Christmas.

In other news, the real estate world was shaken by the federal jury verdict in the antitrust suit against the National Association of Realtors and several major brokerages. While this has the potential to reshape the industry, the sky is not falling and I'm excited to share in coming months how we will be adapting to these changes.

Please don't hesitate to reach out with any questions. Until next time!

While inventory levels have normalized, activity in Manhattan is still lagging. Open house attendance has been in decline since Labor Day, and though signed contract figures are up relative to last month and last year (which were both low points), figures are lacking as a percentage of inventory.

Median days on market, negotiability, and listing discount are all up materially compared to last year, favoring buyers. While closed sale prices have ticked down only slightly, this reflects deals negotiated 45-120 days ago and we expect prices to further adjust to market conditions as Fall deals close and as motivated sellers drop prices to strike deals before the new year.

Brooklyn continued to show strength relative to Manhattan. Contracts signed were level with last year despite even less inventory, indicating extraordinary absorption levels.

Though borough-wide prices were down slightly, it is interesting that this is based on a substantially fewer number of transactions (almost a third less than the number of closed sales last October). Also, as we've said before, these metrics are not indicative of the more in-demand neighborhoods where homes continue to trade above asking price.

October saw two jumps in mortgage rates -- first as an overreaction to the Oct. 6 jobs report and again in anticipation of the November 1st Fed Meeting and the November 3rd jobs report. However, the November Fed meeting and subsequent weak jobs report seemed to allay concerns of another rate hike this year, pushing rates down to 6.892% APR so far in November.

A federal jury ruling that the National Association of Realtors and brokerages had conspired to artificially inflate commissions, has the potential to transform the U.S. real estate industry by changing how buyer's agents can be compensated. (NYTIMES)

In September, Manhattan's median rent slightly decreased to $4,350 from $4,400, indicating more lease renewals as landlords strive to retain tenants, with rent affordability improving marginally amid a shift attributed to market normalization rather than short-term rental restrictions. (CURBED)

New York's neighborhoods are not only shaped by developers and brokers but also by the people who live in them. Check out NY Times' extensive "neighborhood" map, created from over 37,000 responses, which offers a unique look at the city's neighborhoods. (NYTIMES)

Mortgage rates are down over the past week, with the 30-year fixed rate mortgage at 7.77%. The average rate on a 30-year fixed rate mortgage surpassed 8% in mid-October for the first time since 2000. (MARKET WATCH)


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