Given an increase in inventory and drop in demand, as indicated in the recent Brown Harris Stevens Q3 market report, Manhattan is officially in a buyer’s market.
According to UrbanDigs, this is the first time since early 2021 that the market favors buyers. Yet, it will most likely be several weeks and/or months before we begin to see prices fall. In fact, UrbanDigs Co-Founder John Walkup cautions buyers to not expect bargains or deeply discounted prices, because “sellers are not panicky”.
Nonetheless, anyone seriously considering buying should start looking now. Mortgage rates will most likely continue to increase, so buyers requiring financing should act sooner than later. Additionally, prices dropping over the next few quarters ---when compared to their respective periods from the previous year --- will offer buyers room for negotiation.
Prospective buyers, particularly first-time buyers, should pay attention to timing if they need to move by a certain date. For example, board approval can take longer than expected for a number of reasons, like scheduling interviews and poor building management. Set reasonable expectations and plan as far in advance as possible.
While there are a lot of moving parts in play, the good news is that Manhattan buyers will now be in a position where they can both negotiate and consider several options.