The Harlem condo market is keeping a steady pace despite wild gyrations in the global financial markets. Thirty-five contracts were signed during September, posting a 60% increase over August when 22 contracts were signed. Inventory has stayed steady with 250 listings on the market this month against 244 in August and 266 in July.
Most owners typically ask me what the value of their home is today. During the third quarter the average price was either slightly above or below $1,000 per square foot with September averaging $993/SF. This is simply an average and many homes are selling above and below that metric. At the height of the market in 2014 many Harlem condominiums sold well above $1,250/SF. Owners who purchased at the high may be reluctant to sell unless they must. Some owners have chosen to rent rather than sell at a loss. This potential supply constraint could keep prices from eroding further as mortgage rates increase.
The mortgage rate hit 6.7% which is the highest they have been in 15 years. We are noticing many local banks who are offering very competitive rates and huge incentives for local buyers. If you are interested in learning more, please reach out to me.