You may have heard about a “slowdown” in the market during the summer months — and while recent market data is indicative of that, it’s not all bad.
The current slowdown has been caused by multiple factors, including rising mortgage rates, plunging stock and cryptocurrency values, as well as concerns about layoffs. This creates the perfect storm for many New York City buyers, causing them to put their purchasing plans on hold.
For those not as affected by the ups and downs of the market or slightly higher interest rates, now could be the perfect time to buy. With less competition, you’ll find sellers more willing to negotiate on price and developers willing to make deals.
Remember, above all else – cash is king. An all-cash offer is the ultimate prize for a seller, who may be willing to bargain more aggressively for all-cash and a faster selling timeline. For more information on submitting an all-cash offer in this market, read our recent blog post.
For buyers looking to capitalize on the slowdown and land a deal, here are some strategic ways to kick off your property search:
Developers who have just launched projects in the last month are two are now being squeezed by the sales slump. Look here first for turnkey, move-in-ready units. One of the main goals for developers is to sell units as quickly as possible so they can move on to the next project. If sales are turning slower than expected, they’re more likely to make concessions or cut prices to decrease the vacancy rate.
Venture to Brooklyn
While prices in Brooklyn have been higher than ever, they’re still on average less than in Manhattan. Brooklyn offers an array of housing options from large townhouses to condos and co-ops with private outdoor space. If you’re looking for more bang for your buck and amenities without the premium price tag – Brooklyn may be the perfect spot for you.
Seek Excess Inventory
The slowdown has not evenly affected New York City, and some places are in higher demand than others. In the areas where demand is not as high, prices are dropping. Areas like Midtown and the Financial District are currently experiencing a surplus in inventory, meaning competition for buyers is decreasing and the opportunity to negotiate is higher.
You can expect prices to fall as the number of deals drop, says John Walkup, co-founder of real estate analytics firm UrbanDigs. Buyers may not be getting a rock bottom price, but will have the ability to shop and negotiate “without undue time or price pressure from competing buyers,” Walkup says.
Platinum Properties agents are expert negotiators, trained to navigate the choppy waters of the New York City real estate market. If you’re a buyer looking to land a deal during the sales slump, reach out to us today to be connected with one of our trusted agents.