What do industry experts foresee for 2022? You’ll just have to keep reading to find out!
Trends from 2021
Luxury went big
The luxury sector (+$4M) was particularly popular during 2021. The report states that, between 2008 and 2021, six out of the top ten months for luxury dollar volume contracts happened in 2021.
Unrenovated units were unpopular
With a rise in costs for everything from materials to labor, units in need of renovations or repairs fell out of favor with buyers, who instead opted for renovated units. “Buyers voted with their wallets that less work is more,” the report says.
Investing in NYC real estate
Many consider a NYC property to be an investment, but the gains on NYC property haven't approached anything near the stock market. For instance, since 2008, the S&P 500 index has gained more than 200%. But a Manhattan resale condo has only gained roughly 25% during that time.
Predictions for 2022
The Fed could impact the market
Depending on what happens with interest rates, some market segments could see prices falling next year. The report specifically points to luxury and new development condo prices, whose resale values rate hikes could affect the most.
A market slowdown?
We may be in for a slowdown next year. Per the report: “[We predict] a short-term spike in prices from recently signed luxury deals could be followed by a multi-quarter lull in 2022. Increased competition amongst sellers could cool the market and buyers may begin waiting for price cuts.”
The search for equilibrium
The first quarter of 2022 may be significantly slower than the last quarter of 2021, as the market balances out, the report predicts. “The market could go sideways as buyers and sellers search for equilibrium in a more balanced market.”