 We’re pleased to present the Berkshire Hathaway HomeServices 2022 Real Estate Report. In this report, we look at buyers’ changing priorities and tastes, inventory and material supply issues, and we explore which parts of the world are showing lots of growth – from Dallas to Dubai and almost everywhere in between. ✈️🌎 See the report here
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 Photo by Matt Donders By Colin R. O'Leary January 11th, 2022 The cost of borrowing money for a home is on the rise in 2022. Last week was not a great one for the mortgage industry. Seemingly overnight, the narrative has changed as mortgage rates are spiking to levels not seen in two years. By the end of the week ending on January 7th, most lenders were roughly a quarter of a point higher on a conventional 30-year fixed mortgage. Several factors including the omicron variant, inflation, fed tapering, and weakness in the bond market are putting pressure on rising interest rates. Rates have been slowly ticking upwards since August of 2021 when they were still near all-time lows. For example, rates were as low as 2.83% for a 30-year Fixed-Rate mortgage back on August 2nd, according to the site Mortgage News Daily. Mortgage rates were still at historically low levels by the end of the year, however, gradually rising above 3%. Now less than two weeks into the New Year and we're seeing rates rise to the highest levels in 2 years. The interest rate for a 30-year fixed-rate mortgage is currently hovering around 3.64%, as of January 11th, 2022. Many experts in the real estate industry are predicting that rates will rise above 4% in 2022. If rates continue to rise at this level, it won't be long before that happens. How will rising mortgage rates affect real estate prices? It could be bad for sellers in some markets. Higher mortgage rates mean fewer buyers in the market. Fewer buyers in the market mean fewer offers being made. This could put a damper on fast-rising real estate prices around the country, especially in markets with higher inventory levels. Markets with lower levels of inventory should continue to favor sellers in 2022 even with rising mortgage rates. Rising mortgage rates are not necessarily bad for all home buyers and investors though. If home prices decrease in 2022, it could potentially offset rising mortgage costs compared to paying for a home at current home values. How do you think rising mortgage rates affect the real estate prices in 2022? Let us know your thoughts in the comments below.  Photo by Jermaine Ee By Colin O'Leary January 4th, 2022 The Manhattan real estate market just had its best year ever in 2021. The news comes as a surprise to many as the city continues to deal with major issues such as the covid pandemic, population loss, and rising crime. The residential market rebounded quicker than most expected in 2021, with a record $30 billion in sales, according to a report from CNBC. Over 16,000 contracts were signed to purchase real estate in Manhattan in 2021, also a record. The comeback has been driven largely by the luxury market. Apartments priced above $10 million are selling the fastest. Ultra-wealthy buyers are snapping up penthouses and large full-floor units in new buildings. Many purchasers are snapping up second homes as pied-a-terres or investment property. A large percentage of the sales recorded were all-cash deals. New development inventory is finally shrinking in the borough after years of surplus inventory from overdevelopment. Prices are returning to pre-pandemic levels. The market is not showing any signs of slowing down at the moment. An impressive $6.7 billion in sales were recorded in the final quarter of 2021. The average price for an apartment in Manhattan is now $1.95 million, according to the report. The median price of a home in Manhattan jumped 11% year-over-year in the fourth quarter. With rising inflation, supply chain issues, and likely interest rate hikes on the horizon, it will be interesting to see how the residential market plays out in 2022.  |
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Berkshire Hathaway HomeServices 590 Madison Avenue, 40th floor New York, New York 10022 Team Leader: Colin O'Leary Email: thebigcityteam@bhhsnyp.com Phone: 646-300-2012 |
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