The 6 reasons why Compass CEO Robert Reffkin believes Q4 of 2022 was the bottom of the recent real estate market cycle
1. 25% increase in weekly mortgage applications.
2. Mortgage rates continue to move down to a 4-month low.
3. Increase in buyer interest, open house traffic, and offers.
4. In the last quarter of 2022, 42% of sellers were giving concessions to buyers at theclosing table, a 10-year high.
5. Home builder sentiment improved
for the first time in 1 year.
6. Pending closings were down 30+% at points in the fall but over the last few weeks, we have seen pending listings in most of our markets nearly flat year over year.
Q4 Market Roundup
Brooklyn + NYC
Ever wonder what’s going on in
the Brooklyn real estate market?
Compass has compiled an
up-to-date Q4 2022 Brooklyn Market + NYC market report, highlighting the prevailing trends shaping the market to help you stay educated and informed.
The Brooklyn real estate market is recalibrating as it shifts to a more sustainable model after once-in-a-decade activity levels. In Q4, transaction volume dipped 12.7 percent compared to last year and 14.3 percent quarter-to-quarter.
The co-op market saw the most significant decline–21.7 percent fewer trades and double-digit price drops year-over-year. Buyers favored condos and houses; prices were up for both. In fact, the average house sold for $1.4 million.
The highest price for single-family homes out of any fourth quarter on record.
Brooklyn Q4 Market Report
Breakdown of sales, inventory, neighborhoods, property types, and more.
More Manhattan apartments traded in 2022 than in all but three years
since 2012. This 10-year macro-level view illustrates that the market now more closely resembles pre-pandemic levels, dismissing any doomsday narratives and pointing to a continued market rebalancing after two frantic and unsustainable two years of record activity. Overall, sales volume dipped 22.5 percent in Q4 year-over-year, and 17.8 percent quarter-over-quarter as high levels of uncertainty fueled by high inflation and a surge in mortgage rates persuaded some buyers andsellers to stay on the sidelines.
Manhattan Q4 Market Report
Breakdown of sales, inventory, neighborhoods, property types, and more!