We’re getting to that point in the summer when it can be easy to assume that not much is happening. People are away, the city feels a little different and August is just around the corner. If you’ve been in the business for a while, you’ve probably heard more than once that this is the time of year when everything slows down.
But quiet and uneventful aren’t the same thing. There are still deals being made, buyers are still looking and things continue to change around us. Some of those changes may eventually affect the conversations we’re having with our clients.
So before we get into another week, here are a few things I think are worth knowing.
Streets365 Market Dashboard
Mortgage Rates
30-Year Fixed Mortgage Rate: 6.58%
The average 30-year fixed mortgage rate moved up slightly this week, from 6.55% to 6.58%. We have been watching rates move around in the mid-6% range for a while now, without the kind of sustained move lower that many buyers have been hoping for.
Manhattan
Metric Current
Active Inventory 6,187
New Listings 221
Signed Contracts 227
30-Day Contract Pace 933
Median Days on Market — Under $1 Million 74 days
Median Days on Market — $1 Million to $2 Million 64 days
Median Days on Market — $2 Million to $4 Million 64 days
Median Days on Market — $4 Million and Above 88 days
Inventory continues to come down, which isn’t unusual at this point in the summer, but buyers haven’t disappeared. There are still deals being made. That’s worth remembering the next time someone tells you that nothing sells during the summer.
Something New to Know About
There is a new New York State tax that I think deserves some attention from agents.
Beginning July 1, certain high-value New York City residences that are not the owner’s primary residence became subject to a new annual surcharge. You may hear it referred to as the pied-à-terre tax or second-home tax.
REBNY has put together information explaining the new surcharge and, more importantly, an assessment tool that can help determine whether a particular property may be affected.
I’m not suggesting that we become tax experts. We shouldn’t. But if you’re working with someone buying or owning a high-value second home in the city, this is something you should know exists.
One Other Thing I’m Watching
The rental market is still worth watching, even for those of us who spend most of our time on sales.
Rents remain extraordinarily high, and finding a good apartment at a price many New Yorkers consider reasonable continues to be difficult. That’s obviously important if you work with renters, but I think it matters to those of you working with buyers and sellers as well.
The rental and sales markets don’t operate independently of each other. At some point, a renter looks at what they’re paying every month and starts thinking about buying. A buyer looks at mortgage rates and monthly carrying costs and decides renting still makes more sense.
Those decisions are being made every day, and the strength of the rental market is part of the calculation.
What I’m Thinking About This Week
There is always something changing in New York real estate. It may be a new rule, a change in the market or something that hasn’t received much attention yet. Most of the time it isn’t going to change the way we do business, but every once in a while one of those changes is going to matter to one of our clients.
I think that’s why it’s important to keep paying attention to what is happening around us. We don’t have to become experts on every new tax or regulation, and we certainly don’t have to remember every number in the Market Dashboard. But we should know enough to recognize when something may affect a client and then know where to go to get the answer.
Our clients have their own businesses and their own lives to worry about. They shouldn’t have to follow everything that is happening in New York real estate. That’s our job. And I think being able to tell a client, “There’s something here we should take a look at,” is one of the small ways we become more valuable to them.
Thought for the Coming Week
Stay curious about what’s changing around you.
Your clients don’t need you to know everything. But they need you to notice what’s happening in the market that could affect their search or sale.
Till next week,
George