Every Other Real Estate Market in the US vs Manhattan
Every market in the US had record real estate pricing in 2020, 2021, and 2022. Except New York City. We took a while to wake up after COVID- then we also had an incredibly strong real estate market in 2021 and 2022. But NYC never reached its last market peak of 2016 in Manhattan- though Brooklyn did hit new levels. What do we make of this?
Now, I speak to agents across the country who see a significant slowdown. In Connecticut, it’s slow, due to low inventory, but new properties sell as soon as they’re listed. So the slowness is more inventory-driven than anything.
One DC agent I know hasn’t seen it this slow in TEN YEARS! In DC, though, that means it’s taking thirty days for properties to sell. Not exactly a problem, even if overeager sellers are freaking out…
What We Are Seeing Elsewhere Today
- In most places, markets were insanely busy. Now they aren’t.
- Specifically, superinflated markets like Miami are coming back to earth, too. Owners who purchased pre 2020 are okay. Those who bought in the last 2 years may be underwater.
- As Brooklyn behaved a bit differently than Manhattan, we’re seeing a more significant slowdown there.
- As mortgage rates stabilize and drop, markets will continue to move to historical pricing levels. That may mean that buyers overpaid a bit in markets everywhere – except, perhaps, in Manhattan.
Manhattan vs Brooklyn
In Manhattan, some properties always take a while to sell. High-end cooperatives never flew off the shelf. After 20 years of selling real estate, I know that this market- and specifically Manhattan- will never be the crazy whipsaw of a Miami. It will never be the boom and bust of secondary markets of Upstate New York and ski towns like Park City. There was less volatility before. And there is far less here than anywhere else now, too. But Brooklyn seems to act like its own market. Sort of like British English and American English- these markets don’t always speak the same language.
Where they Agree
They still have the same words for nightlife and culture, though. New York is still where people want to live. Restaurants are opening up and are packed again. Other retail is being scooped up. People are doing their thing. Traffic has returned. Subways are packed. Musicians are collecting donations. Tourists flood the streets. Life is returning to normal here, too. But the manic energy of other markets is not present.
If you haven’t been in New York in a while, things feel like they got up to a great big hurry again. But now, people will have time to make educated decisions about their homes.
The Reversion To The Mean Is Underway
Every market is reverting to its mean- it’s normal. New York Normal is just a little different than anywhere else.
As they say, “It’s all good man.” -S