Well this is something I think most of us saw coming. We all knew there was a rush to close before the new mansion and transfer tax laws took place especially for luxury sales. To give you a better idea of the swing, there were records broken in June to beat out the deadline of July 1. There were 685 sales above $2M in June compared to 162 homes in July. This would mark the lowest July total since 2009 and the weakest month overall since 2013. One can argue this was the hangover of so much activity in June. I'm going to share a few charts with you that help put things in perspective.
Well said --> "The slowdown in Manhattan is a combination of an exodus of foreign buyers; President Trump’s income tax changes, which limited the deductions for mortgage interest to the first $750,000 borrowed and capped state and local taxes (including property taxes) to $10,000; a domestic economy that is slowing; trade war uncertainties from the Trump administration; and a global synchronized slowdown."
One thing we all have always heard is "buy low sell high". It is ideal for buyers when the market is slow with high inventory. They have more leverage in negotiation which results in better acquisition prices. Homeowners looking to trade-up to a larger apartment and investors should really consider their options. " Trade-up" means a homeowner to sell their current apartment to buy a larger one (to fulfill their needs of owning a larger apartment) with a nice profit spread in mind for when they resell. Remember no one has a crystal ball as to when the market picks back up but we do know it is a buyers market out there. Keep in mind rates are low and rents are smashing high. Low rates mean stronger buying power and lower overall payments through time. If you are tired of lighting your money on fire by renting and thinking of buying you absolutely should speak to a real estate professional (like me) who will tell you what you need to know regarding the building financial requirements and put you in touch with a lender who can give you more clarity on what you can afford. It's all free btw. Worst case if you don't find a residence that you feel is "home" or a deal that isn't sweet enough you continue to rent. At least you gave yourself a chance to stop renting and make an investment in the place you call home.
If you want to chat about buying possibilities click here for my contact form or call/text me 917-407-0287
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Speaking of mortgage rates, look at this chart. Currently, interest rate on a 30yr fix is 3.75%.