Economic uncertainty and higher interest rates in Harlem
By Robert “Robb’ Pair, Founder & President, Harlem Lofts, Inc
Welcome to the first Harlem Lofts Real Estate update for Harlem World Magazine!
Harlem Lofts is a boutique real estate company incorporated in 2002 and located at 272 Lenox Avenue.
Using a research-based strategy, we focus on seller representation with a specialization in Upper Manhattan townhouses and condominiums, while maintaining an extensive database of qualified buyers.
Our monthly market analysis videos are available on our YouTube channel at https://tinyurl.com/HLIYouTube
As our recent reports show, our research shows that after a very active year in 2021, the Upper Manhattan real estate market now faces tougher times in the face of economic uncertainty and rising interest rates. interest.
For example, townhouse inventory in all twelve Upper Manhattan zip codes is now at its highest level in five years (Chart 1, below), while the number of In-Contract registrations is at its lowest level in three years (Chart 2) and sales are stagnating.
This summer marked a transition from a nascent seller’s market in the spring, marked by low inventory and strong demand, to a buyer’s market this fall, with high inventory and increasingly prevalent seller’s discounts in the face of to market competition (Chart 3).
The good news for sellers, and worth noting for buyers, is that this transition will almost certainly be temporary. I predict that interest rate increases will be here for the foreseeable future, but over time buyers will accept them.
The current interest rate will become the new normal and the market will adjust to adapt to the changed landscape.
I also predict changes in the rental market will impact townhouse sales. Not all townhouses are the same: 1-2 family properties are residential while 3+ family homes are investment properties rated by rental income. I predict that sales of the latter will lead to a market recovery this fall – buy-to-let investment sales are on an upward trend that coincides with the significant increase in rents seen following the COVID-related downturn.
We hope you enjoy this article! Our understanding of the market puts us in a unique position to help our customers.
Future articles will focus on the condo and rental markets in Upper Manhattan. Please feel free to contact us at [email protected] with your real estate needs, and on our website at https://harlemlofts.com/.
This report contains a lot of information! If you prefer a video summary, join us on our YouTube channel at: https://tinyurl.com/HLIYouTube
Robert “Robb’ Pair, Founder and President, Harlem Lofts, Inc.
Harlem Lofts Inc. is a real estate company incorporated in 2002 and located at 272 Lenox Avenue in Harlem, New York. The company covers all major types of residential real estate transactions in Upper Manhattan, with an emphasis on seller representation while maintaining an extensive, proprietary database of qualified buyers who we work with on a carefully personalized basis.
With an experienced group of industry professionals at its core, the employee-owned company is divided into three complementary divisions: Research, Sales and Purchasing. Our approach to real estate begins with exceptional quality research, which underpins our strategic sales model. We also work with qualified buyers on a carefully matched basis.
Harlem Lofts, 272 Lenox Avenue, Harlem, New York, 212.280.8866, [email protected], 212.280 8866.
“Dr. Harry Delany is a renowned surgeon born and raised in Harlem, the son of the great jurist and civil rights leader, Hubert Delany….” This monthly post is written in Partnership with Harlem Cultural Archives.