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A record for cash home purchases is being set in Manhattan

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Cash fuels Manhattan housing boom as unfinanced real estate “golden deals” break record in post-pandemic era

Ρεκoρ στις αγορ ς κατοικιoν με μετρητa καταγρaφ&epsilon ;ται στο Μανχàταν

The cash share of Manhattan home purchases jumped to nearly 2/3 of deals, a record high in nine years of tracking.

Cash is fueling a boom in Manhattan's housing market, as unfinanced real estate “golden deals” break records in the post-pandemic era. About 65% of purchases completed without loans in the three months to June, up from 57% in the first quarter, the highest share since 2014, when property consultancy Miller Samuel and brokerage Douglas Elliman Real Estate began record payment methods. In other words, the share of cash purchases jumped to nearly 2/3 of all deals, a record high in the nine years of data keeping.

Buyers are turning to cash as mortgage rates hover around double their levels in early 2022. In turn, sellers looking to close deals quickly in a market that has been “frozen” since the pandemic coronavirus, they seem more willing to accept bids from bidders who don't need a loan. The number of homebuyers taking the sting out of higher interest rates has more than halved from a year ago. “This is an additional reason to value the luxury home market, which has a larger share of purchases by cash buyers,” Miller said.

About 65% of deals closed without loans in the second quarter. .

Despite a 40% drop in transactions, Manhattan's luxury real estate market was strong in the second quarter, according to a new report. The median price of a home in the top 10 percent of the market was $6.7 million, up 3.9 percent year-on-year and up 18.7 percent from the first three months of the year, the data showed. The bidding war for luxury homes, meanwhile, in Manhattan was the third highest on record.

There are reasons for optimism as we head into the second half of the year, according to Bess Friedman, managing director of Brown Harris Stevens, which released its second quarter 2023 Manhattan housing report yesterday. “The biggest reason for optimism is the drastic reduction in inflation over the past year,” he said in the report, adding that the recovery in the property market and the calm of the banking crisis were also encouraging factors. “While mortgage rates have not fallen as much as expected over this period, we believe this will change in the coming months. Don't expect to see 3% 30-year rates anytime soon, but then again, we don't need historically low interest rates to have a healthy housing market.”

Source: www.kathimerini.com.cy

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