New York home sales could slow in 2022

Bess Freedman, CEO of Brown Harris Stevens (Brown Harris Stevens, iStock)

After 2021 marked a banner year for housing markets in Manhattan and Brooklyn, New York home sales could slow in 2022, BHS CEO Bess Freedman said.

Freedman told Bloomberg TV’s Surveillance that rising interest rates and housing supply issues could spur the city’s change in sales pace.

“The Fed has said rates will go up maybe two to three times next year, so we could see a bit of a slowdown,” Freedman told Bloomberg. “Also, the supply has gone down because the demand is so increased.”

The brokerage leader’s prediction mirrors similar projections from Jonathan Miller, who compiled a November market report for Miller Samuel on behalf of Douglas Elliman.

“Inventories continue to tumble, and that’s why we expect prices to continue growing in the new year,” Miller said. The real deal.

UrbanDigs real estate data released earlier this month indicated that through Dec. 5, listings in Manhattan were 18% above the 2008-2018 average. But buyers have exhausted supply at an even faster rate, putting net new stock below zero for nine of the 11 months this year. Net new inventory in November was negative 861 units.

Meanwhile, UrbanDigs noted that signup discounts fell steadily throughout the year for the first time since mid-2015. Prices rose in tandem, helping lead to a banner year for Manhattan’s luxury market.

Supply and demand issues across the country have boosted the housing market. A Redfin report showed that the number of homes on the US market hit an all-time low in the week ending November 28. There were fewer than 539,000 active listings this week, a 26% year-over-year decline.

Strong demand and weak supply led to a median sale price of $360,375 in the United States for the first four weeks of November, breaking a record high dating back to July 25.

[Bloomberg] — HoldenWalter Warner