The Harlem condo market has experienced the same slowdown as the rest of the city. But don’t believe the doom and gloom headlines. The market is not going into a tailspin, it’s merely shifted from super-heated to a more normal pace. The days-on-market metric is a very encouraging 88 days and properties continue to sell well in the neighborhood — from value plays to luxury new development.
Because sales have slowed in the past couple of months, inventory is tipping into an oversupply position. Lackluster sales in July are not uncommon — buyers go on vacation and trade Sunday Open Houses for outdoor activities. The inventory levels have remained steady over the past three months, it is the slowdown in demand which creates the oversupply.
In July, the average price per square foot in Harlem was $993. Buildings without amenities typically trade below $950/SF. Larger buildings with amenities trade in the $950-$1200/SF range while the luxury new developments are selling north of $1,300/SF.
We don’t have an agreed upon method of measuring real estate in NYC so don’t judge your potential sale price solely on your square feet. If you have questions about a list price, please reach out to me for an estimate.
Mortgage rates continue to top 5% as the Fed increased interest rates again at the end of July. While this is still a historically low number, it has caused some buyers to pause. They are also feeling the crunch as their equity positions have eroded this year giving them less money for a down payment. We are encouraging buyers to move ahead even at the current mortgage rates because real estate is a classic hedge against inflation.
During turbulent times, diverse holdings — which include real estate — can help you sleep at night.