New York City homebuyers expecting to find less competition this summer may be in for a shock. The Manhattan summer buying season is shaping up to be one of the most active in recent memory, according to a new report from real estate data provider UrbanDigs.
Traditionally, the summer months bring warm weather and a general slowdown to Manhattan’s real estate market; however, a combination of low inventory and high competition has resulted in an increase of contracts signed weekly compared with the past several years.
A decline in the number of weekly new listings in Manhattan is expected to continue through the … [+] summer, creating more competition for homebuyers.
UrbanDigs
UrbanDigs co-founder John Walkup sums up the market activity, which began heating up in Q4 2020 before reaching a peak towards the end of spring. “The number of contracts signed on a weekly basis is far outpacing what we’d expect during a typical year — and it’s a trend that stretches back to at least the beginning of April. With that, this summer may see less of a slowdown and more of a continuation of the record-breaking Manhattan market.”
After seeing a spike in contracts signed from April through May, the weekly average held steady at about 300 or more signed through June—the highest activity level seen in the past five years. During the first week of July 2021, there were about 275 contracts signed, which eclipsed the previous five-year high of about 180 contracts signed in 2017.
Despite a decline in weekly new listings, the number of weekly active contracts signed have … [+] increased to levels not seen in more than five years.
UrbanDigs
For new active listings, the numbers tell a different story. During the first week of July, there were a little over 200 new listings, or about 50% less than there were during the same period in 2020, UrbanDigs data shows. The year-over-year decline in new listings coming to market is expected to continue through summer.
Compared to other major markets in the U.S., Walkup says Manhattan’s market was slow to recover but saw “a breakneck pace for deal activity starting mid-Winter.” “Like other metro markets, though, the peak level of activity was record-breaking,” he adds.
Located in Carnegie Hill, this light-filled two-bedroom at 1088 Park Avenue is listed for $2.65 … [+] million.
Warburg Realty
Despite increased activity and less inventory, prime properties at various price points are entering the market daily. In the Carnegie Hill neighborhood, this classic six-room apartment in one of Park Avenue’s premier buildings is listed for $2.65 million. The two-bedroom, 2.5-bathroom residence featured a light-filled living room with a wood-burning fireplace, a grand dining room and a windowed kitchen with ample cabinet space. A south-facing window with a view down Park Avenue is another perk.
In the $2.8-million range is this three-bedroom Lenox Hill apartment at 156 East 79th Street.
Warburg Realty
At about $2.8 million, residential options include this Lenox Hill apartment in a classic Schwartz & Gross-designed building. Reconfigured to feature an extra bedroom or family room, the seven-room (formerly eight-room) residence features a flexible layout, 10-foot-high ceilings, beautiful hardwood floors and a glass-enclosed den/library that sits off the living room.
A long entrance gallery, 9-foot-high-ceilings and hardwood floors highlight this Carnegie Hill … [+] apartment at 1160 Park Avenue. Asking price: $3.2 million.
Warburg Realty
Priced at $3.2 million, this Park Avenue residence in Carnegie Hill pairs well-proportioned rooms (including a 31-foot-long entrance gallery) with 9-foot-plus-high ceilings, hardwood floors, and oversized windows. The 2,300-square-foot floor plan also comes with ample closet space and a storage bin within the pet-friendly building.
Once owned by artist Leroy Neiman, this Lincoln Square duplex with original details and a modern … [+] kitchen is listed for $4.25 million.
Warburg Realty
In Lincoln Square’s legendary Hotel des Artistes, a south-facing duplex once owned by pop artist Leroy Neiman is for sale at $4.25 million. Meticulously restored and enhanced, the prewar residence combines original details such as a plaster ceiling and a stained glass entry window with a modern chef’s kitchen and two generous bedrooms. In the main living area, which stretches some 30 feet long, picture windows take in a side view of Central Park.
Located within the exclusive Kiska building at 353 Central Park West, this full-floor condominium … [+] with spectacular skyline and tree-top views is listed for about $8 million.
Warburg Realty
Prices creep even higher on the Upper West Side, where this full-floor condominium inside the boutique Kiska building is listed for about $8 million. A key-locked elevator is used to access the four-bedroom, three-bathroom residence, which features an enhanced kitchen, an open dining area and sweeping skyline and Central Park treetop views.
TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.
The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.
The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.
CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.
However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.
Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.
This report by The Canadian Press was first published Sept. 17,2024.
OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.
The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.
On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.
CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”
The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.
The number of newly listed properties was up 1.1 per cent month-over-month.
This report by The Canadian Press was first published Sept. 16, 2024.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
