I hope you are all having a great time enjoying the warm weather and sunshine.
The momentum continues to build for Digs as we celebrate another busy few months. We now have nine closed deals in 2016 with twelve more in contract and, as of the time of this writing, another four offers accepted. We are way ahead of where we were last year at this time and we need to give you all a big THANKS for helping Digs get to where it is! We are extremely grateful for your support and referrals (the lifeblood of our business) and look forward to continuing to grow with all of you!
The big news in the real estate market these past few weeks has been Brexit. Although the stock market’s high volatility in the aftermath of the Brexit vote caused quite a stir, and two of my clients actually told me that they were stepping back from their search to see how things shake out, many of my buyers have since exhaled and taken a business-as-usual approach. With the return of the stock market to record highs, the publication of articles putting a positive spin on the effect of Brexit on NYC real estate, and the further dropping of already low mortgage interest rates to unfathomable lows (yes, one of my clients locked a 30-year fixed jumbo at 3.125% without any discount points), Brexit does not appear to have had an immediate affect on NYC real estate.
So how is the market you ask? Well, it depends on what you’re looking at. In Manhattan, although growth in the median resale price continues to decelerate, increasing by a mere 2.8% from last year to $987,271, certain segments show no signs of cooling down. The segment of the market that I refer to, somewhat ironically, as the “starter apartment” segment ($750K – $2M studios and one and two bedrooms), which comprises a hefty chunk of our business, remains red hot, as units with broad appeal and proper pricing continue to sell briskly, often with multiple bids. The market for higher priced units is really where you see a palpable softening.
The Brooklyn market has also continued to show its legs, with the median resale price up by 7.8% from last year to $562,256. In East Brooklyn, which includes Bed Stuy and Crown Heights (common targets of many Digs clients), the median resale price is up 19.3% from last year, according to the StreetEasy Price Indices. Nearly all units that my clients have bid on in Brooklyn this year have had multiple bidders (in one case in excess of 12) and have gone to best-and-final bidding rounds. It is extremely difficult to buy an apartment in Brooklyn these days, as you will very likely have significant competition for every unit or house that you try to purchase.
That is our Q2 update. Please enjoy the below links to some interesting market and neighborhood news. I will be in touch in a few months!
Digs Realty is a full-service residential real estate brokerage company specializing in home purchases and sales in New York City. Clients working with Digs on a purchase are eligible for a rebate of up to 2% of the purchase price, and clients working with Digs on a sale are eligible for commission discounts.