We wanted to share some insights from our firm-wide meeting where we discussed macro trends since 2009
While we hesitate to talk about THE market, because each type of building, location and scenario requires its own analysis, we thought it would be interesting to share these insights:
Many owners who bought between 2013-17 find themselves flat in terms of value today (see chart below) and the question is why and where will prices go?
Fluctuating macro conditions have caused some micro cycles within the larger ones. For example, this was an unseasonably busy summer due to a decline in mortgage rates and buyers wanting to "move on with their lives."
New York always tends to pause during and immediately after a significant macro event such as an election.
While Fed Funds futures have essentially baked in a 0.25pt cut right after the election, and seemingly one in December, the recent rise in the 10yr Treasury has subsequently wiped out the improvements in mortgage rates from this summer, and there is a sense that mortgage rates may remain elevated into Q1 of next year.
We would expect a moment of pause after the election, yet regardless of the result, we expect an increase in buyer activity with limited supply as we move into the end of the 2024 and into Q1 2025.
MANHATTAN PRICE PER SQUARE FOOT CHART
