New York City Real Estate Market Continues Correction

NEW YORK - Jan. 23, 2023 - PRLog -- The correction continues. New contracts are down over 30% week-over-week and year-over-year, respectively. Perhaps there may be some light at the end of the tunnel as the rate on a 30-year fixed sits at 6.2%, which is a four-month low.

According to the latest from the Mortgage Bankers Association "Mortgage rates are now at their lowest level since September 2022, and about a percentage point below the peak mortgage rate last fall. As we enter the beginning of the spring buying season, lower mortgage rates and more homes on the market will help affordability for first-time homebuyers." Said Mike Fratantoni, MBA's SVP and Chief Economist.

As we stated in last week's snapshot, the flurry of new contracts we saw in the last few weeks of 2022 might be a sign of things to come. While the headline number may be concerning, when viewed in the context of the high-water mark set during the peak of the COVID-19 pandemic, and when compared to the same period in 2019, the data appears to be relatively stable.

This week, we will have news reports that I will be closely monitoring. On January 26th, we will receive the report for New Home Sales for the month of December, and on January 27th, we will receive the month-over-month reading of pending home sales.

Important Econ Data to Watch This Week:

Jan 26: Advanced GDP
Jan 26: New Homes Sales
Jan 27: Core PCE
Jan 27: Pending Home Sales m/m

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