We are fully into the summer slowdown, as contracts signed have paused significantly.
The slowdown occurred earlier than expected this year as the April macro environment put many buyers on pause, particularly in the lower end of the market.
Conversely, at the higher end of the market (10M+), contracts signed were 50% higher than the rolling seasonal average. This divergence has been in play since April of 2021.
The opportunity for active buyers begins now and continues into the end of September, which is a notoriously slow month. Supply is significantly constrained, and is continuing a multi-year trend. This is unlikely to change until the rate environment improves.
Given the upcoming Mayoral election, we may see a pause even in the fall market with some buyers waiting for clarity on the outcome. Typically, macro events cause pauses rather than corrections in the Manhattan market.
Rents have pushed significantly above record highs due in part to the new FARE Act, but also due to buyers holding off for more macro clarity.
Here's wishing you a fantastic summer, and until we see each other in person, all the best!
