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IPFS News Link • Housing

Sub-Million-Dollar Manhattan Condo Sales Slump Below Pre-COVID Trend As Affordability Crisis Rages

• https://www.zerohedge.com by Tyler Durden

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.


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