August NYC Market Report 2019

On July 31st, the Federal Open Market Committee announced that the Fed Rate dropped 1/4 point, bringing it down to 2.25%. This is the first cut since 2008. In past situations, the Fed usually cut rates after home prices have dropped dramatically, but this time they cut it .25% right when home prices began to level out, potentially keeping the market temporarily booming for the next year or two.

So what does this mean for the Real Estate Market? In theory, lower Fed Rate means lower mortgage rates, however since the rates are already at a historic low, falling below 4% it’s not going to drop dramatically.

On the upside when mortgage rates remain low, it generally is the peak time to sell. Reason being is that, it makes it easier for people to buy, especially for millennial’s (a now large portion of current buyers) who’s debt to income is not what it should be. Right now is the best time to sell while prices are at a high and right before the market takes a shift after the 2020 elections, especially in the event the market takes a crash.

Does that mean that it’s a bad time to buy? Not necessarily, right now we are living in a time where there are different decisions being made than the norm, as well as all new scenarios playing out and it’s sort of a mix when it comes to the market, so while some homes are inflated, you will see others priced low making it a good buy.

Below is what the market currently looks like in Manhattan from studios to 5 bedrooms. The smaller listing prices get sold more often and faster than higher priced homes, in that majority are studios and one bedrooms. Looking for an in depth market report? Click on contact or email me at hello@courtneykoc.com

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