Sub-Million-Dollar Manhattan Condo Sales Slump Below Pre-COVID Trend As Affordability Crisis Rages
September 9, 2022 8:00 pm
Tags: “trend, affordability, below, condo, crisis, joshwho, Manhattan, Media, News, pre-covid, rages, sales, slump, sub-million-dollar, ZeroHedge
Categories: JoshWho News news media US News ZeroHedge
New Yorkers searching for a sign of relief from Manhattan’s red hot real estate market may finally be getting some good news.
The borough’s lower-end real estate market is beginning to cool after a year of bidding wars. Rising mortgage rates have made borrowing costs more expensive, curbing demand for prospective homebuyers with budgets under $1 million, according to Bloomberg, citing new data from brokerage Serhant.
Serhant found the number of listings under $500,000 that entered contracts in the three months beginning in June was 29% below the decade average leading up to the virus pandemic. The number of properties that went under contract between $500,000 to $1 million was 15% below the pre-Covid average.
Garrett Derderian, Serhant’s director of market intelligence, said buyers under a million dollars are more susceptible to rising mortgage rates.
“Even a one or two percentage point increase does make a difference to the borrowing power of those buyers,” Derderian said.
He described a housing affordability crisis: the 30-year fixed mortgage jumped from 3.2% starting the year to 6% in June. As of this week, Bankrate data shows the 30-year fixed mortgage is back above 6%.
We warned that skyrocketing mortgage rates would spark a housing affordability crisis as early as March. Fast forward to today, the affordability index crashed to three-decade lows.
The affordability crisis has pressured the lower-tier homebuyers first, as soaring borrowing costs may have ended the 2021 housing frenzy.
Transactions entering contract have been slowing compared to last year as buyers are deterred by higher rates, with Manhattan home deals dropping 39% in June, July and August from a year ago. Contracts signed were also 10% below the average levels for the same months during the decade before the pandemic hit. –Bloomberg
In June, July, and August, the median price of a Manhattan property was approximately $1,159,000 and only increased by 1% over the same period last year. At some point, the growth in home prices will stall and then reverse. Inventory is rising much quicker than last year.
Suppose mortgage rates remain elevated while inventory increases, along with high inflation eating away wages. In that case, there’s the possibility downward pressure could finally reverse prices.
- UK Summons Chinese Ambassador Over Beating Of BBC Journalist December 2, 2022
- November Payrolls Preview: A Miss Will Be Good For Stocks But A Huge Miss Means Recession December 2, 2022
- America To Unveil World’s First Sixth-Generation Bomber Friday December 1, 2022
- Why Is Booz Allen Renting Us Back Our Own National Parks? December 1, 2022
- Congress Adds $45 Billion To 2023 Military Budget December 1, 2022
- San Francisco Approves Lethal Police Robots After ‘Unhinged’ Board Of Supervisors Hearing December 1, 2022
- White House “Isn’t Taking A Side” On Cause Of Anti-Lockdown Protests In China December 1, 2022
- Lava Flows From Mauna Loa Volcano Could Reach Major Hawaii Highway “In Days” December 1, 2022
- This Is Of Course Insane December 1, 2022
- Here Are The Best And Worst Performing Assets In November And YTD December 1, 2022
- Railroaders Say Morale, Quality-Of-Life At All-Time Low December 1, 2022
- GOP Senators Say They Will Block Military Funding Unless Vaccine Mandate Scrapped December 1, 2022
- Court Rejects Joe Biden Push to Remove Block on Student Debt Transfer Program December 1, 2022
- Continuing Jobless Claims Hit 10-Month Highs As Layoffs Exploded In November December 1, 2022
- Schiff: Fed Soft Pivot In Play; Markets Ignore Powell’s Hawkish Talk December 1, 2022
- Fed’s Favorite Inflation Signal Dips (Holds Near 40 Year Highs) As Savings Rate Crashed December 1, 2022
- EU Threatens to Ban Twitter Over Elon Musk’s Free Speech Plans December 1, 2022
- Biden Admin Pledges $53 Million To Help Restore Ukraine’s Damaged Power Grid December 1, 2022
- EU Threatens Musk With Twitter Ban Over Content Moderation December 1, 2022
- ‘Operation Pelican’: Details Of UK’s Secret Op To Seize Assange Revealed December 1, 2022
- Not Acxiom (unverified) - 51,730,831 breached accounts November 22, 2022In 2020, a corpus of data containing almost a quarter of a billion records spanning over 400 different fields was misattributed to database marketing company Acxiom and subsequently circulated within the hacking community. On review, Acxiom concluded that "the claims are indeed false and that the data, which has been readily available across multiple environments, […]
- GGCorp - 2,376,330 breached accounts November 8, 2022In August 2022, the MMORPG website GGCorp suffered a data breach that exposed almost 2.4M unique email addresses. The data also included IP addresses, usernames and MD5 password hashes.
- Lolzteam - 398,011 breached accounts November 6, 2022In May 2018, the Russian hacking forum Lolzteam suffered a data breach that exposed 400k members. The impacted data included usernames and email addresses which were later redistributed via another hacking forum. The data was provided to HIBP by a source who requested it be attributed to "ZAN @ BF".
- Doomworld - 34,478 breached accounts October 24, 2022In October 2022, the Doomworld fourm suffered a data breach that exposed 34k member records. The data included email and IP addresses, usernames and bcrypt password hashes.
- E-Pal - 108,887 breached accounts October 24, 2022In October 2022, the service dedicated to finding friends on Discord known as E-Pal disclosed a data breach. The compromised data included over 100k unique email addresses and usernames spanning approximately 1M orders. The data was subsequently distributed via a popular hacking forum.
- Wakanim - 6,706,951 breached accounts October 6, 2022In August 2022, the European streaming service Wakanim suffered a data breach which was subsequently advertised and sold on a popular hacking forum. The breach exposed 6.7M customer records including email, IP and physical addresses, names and usernames.
- Bhinneka - 1,274,340 breached accounts October 6, 2022In early 2020, the Indonesian consumer electronics website Bhinneka suffered a data breach that exposed almost 1.3M customer records. The data included email and physical addresses, names, genders, dates of birth, phone numbers and salted password hashes.
- TAP Air Portugal - 5,067,990 breached accounts September 23, 2022In August 2022, the Portuguese airline TAP Air Portugal was the target of a ransomware attack perpetrated by the Ragnar Locker gang who later leaked the compromised data via a public dark web site. Over 5M unique email addresses were exposed alongside other personal data including names, genders, DoBs, phone numbers and physical addresses.
- Brand New Tube - 349,627 breached accounts September 8, 2022In August 2022, the streaming website Brand New Tube suffered a data breach that exposed the personal information of almost 350k subscribers. The impacted data included email and IP addresses, usernames, genders, passwords stored as unsalted SHA-1 hashes and private messages.
- START - 7,455,386 breached accounts August 30, 2022In August 2022, news broke of an attack against the Russian streaming service "START". The incident led to the exposure of 44M records containing 7.4M unique email addresses. The impacted data also included the subscriber's country and password hash. START subsequently acknowledged the incident in a Telegram post and stated that the data dated back […]