Manhattan Real Estate: Supply is Up, Pending Sales are Down. What Does it Mean?

Supply is rising and pending sales are falling. Does that mean the market is flooded with desperate sellers and prices are plummeting? Nope.

There's always a bit of a shift in October. We've essentially gone back to average supply and demand levels. As for prices, they've already come down and seem to have found their levels. April was the peak, followed by reductions which occurred last quarter (more on that below).

We see an opportunity for buyers right now. In uncertain times (and there is a lot of uncertainty these days), many people decide that the best course of action is to do nothing - to "wait and see." That clears the path for buyers who want to take advantage of lower prices, more homes to choose from from, and less competition.

Regarding interest rates, as a colleague says, "You marry the price but date the rate." In other words, you can't "re-price" a home after you've bought it, but you can refinance when interest rates come down. In the near term those rates will probably rise, so if you "wait and see" you'll end up paying more.

Buyer or seller, please let us know how we can help you with your real estate needs.