"New York City agents, cross your fingers, knock on wood and say a prayer because the residential market might be headed for a solid end to the year. Though typically one of the weakest periods, macroeconomic factors namely lower mortgage rates could prove fertile ground for a number of deals, particularly at the lower end of the market, said appraiser and data expert Jonathan Miller. Metrics from last quarter might, at first glance, cast doubt on that theory."
"Though sales were up overall, the borough logged more activity at the higher end of the market, where buyers are less sensitive to mortgage rates and can often close deals in cash, Miller's report showed. During the period, co-op and condo sales backed by financing actually fell 9 percent year-over-year and accounted for only 35 percent of all deals for the property type."
Lower mortgage rates could create stronger residential sales near year-end, with potential strength at the lower end of the market. Last quarter showed overall sales growth but a shift toward higher-priced transactions and cash buyers. Co-op and condo sales backed by financing fell 9 percent year-over-year and comprised only 35 percent of those deals. The recent decline in mortgage rates began late in the quarter, so its full effect is expected to appear next quarter. Continued improvement depends on mortgage rates falling further or remaining steady. Early indicators show modest contract gains and increased new listings in Manhattan and Brooklyn, led by the luxury segment.
Read at therealdeal.com
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