Manhattan Homebuyers’ ‘Fear of Missing Out’ Starts to Dissipate
Real estate sales in Manhattan are starting to slow from the frenzied pace of recent years amid stock market declines and recession talk.
The lower Manhattan skyline is seen on a helicopter ride above the Financial District of New York, U.S., on Tuesday, May 7, 2019.
Photographer: Jeenah Moon/BloombergManhattan’s hot real estate market is starting to cool.
As sales boomed from late 2020 through early 2022, potential buyers didn’t want to miss out on the chance to get in before prices rose further. But now, some buyers are putting their hunt on hold, according to interviews with agents and other real estate experts. Other consumers who are continuing to look are starting to become pickier about price, a marked shift from last year.
After more than a year of frenzied sales that moved quickly and often above asking price, “there’s no more fear of missing out,” said Kimberly Jay, an Upper East Side-based Compass Inc. agent.
While Manhattan sales typically slow during the summer, market veterans believe they’re seeing more than just a normal seasonal shift. At best, it might be a return to market dynamics before Covid-19 hit, when well-priced homes sold quickly and especially desirable ones went for above their asking price while others languished for months or even years.
Across the US, the housing market has started to show signs of softening from its once-frenzied pace due in part to the near doubling of rates on a 30-year fixed mortgage since the start of the year. But in Manhattan, roughly half of purchases are in cash, meaning it’s the losses across the stock and other assets such as cryptocurrencies that are starting to chill the housing market’s momentum, agents say. The chorus of executives warning about a potential recession hasn’t helped either.