Upper Manhattan Real Estate Update: Economic Uncertainty And Higher Interest Rates In Harlem

September 17, 2022

By Robert “Robb’ Pair, Founder and President, Harlem Lofts, Inc

Welcome to the first Harlem Lofts Real Estate Update for Harlem World Magazine! 

Harlem Lofts is a boutique real estate firm incorporated in 2002 and located at 272 Lenox Avenue.  

Using a Research-based strategy, we keep a sharp focus on Seller representation with specialization in Upper Manhattan townhouse and condominium properties, while maintaining an extensive database of well-qualified Buyers. 

Our Monthly Market Analysis videos are available on our YouTube channel, at https://tinyurl.com/HLIYouTube

As can be seen from our recent Reports, our Research shows that after a very active year in 2021, the Upper Manhattan Real Estate Market is now facing a more challenging period in the face of economic uncertainty and higher interest rates. 

For example, Townhouse inventory in the twelve zip codes of Upper Manhattan is now at a five-year high (Graph 1, below), while the number of In-Contract listings is at a three-year low (Graph 2) and sales are sluggish. 

This summer has marked a transition from an incipient Seller’s market in the spring, marked by low inventory and high demand, to a Buyer’s market this Fall, with high inventory and increasingly widespread Seller discounts in the face of market competition (Graph 3).

The good news for Sellers, and of note to Buyers, is that this transition will certainly be temporary.  I predict that the increased interest rates will be around for the foreseeable future, but that in time Buyers will become accepting of them. 

The current interest rate will become the new normal, and the market will adjust to accommodate the altered landscape.

I also predict that changes in the rental market will impact townhouse sales.  Not all townhouses are the same: 1-2 family properties are residential while 3+ family are investment properties valued by rental income.  I predict that sales of the latter will lead a market recovery this Fall – rental investment sales are trending upward coincident with significantly increased rents seen following the COVID-related downturn.

Final Thoughts

We hope you enjoy this article!  Our understanding of the Market put us in a unique position to help our clients. 

Future articles will focus on the Upper Manhattan condo and rental markets.  Feel free to reach out to us at info@harlemlofts.com with your real estate needs, and on our website at https://harlemlofts.com/. 

This report contains a lot of information! If you prefer a video summary, join us on our YouTube channel, at:  https://tinyurl.com/HLIYouTube

Robert “Robb’ Pair, Founder and President, Harlem Lofts, Inc

Harlem Lofts Inc. is a boutique real estate firm incorporated in 2002 and located at 272 Lenox Avenue in Harlem, New York.  The firm covers all major residential property transaction types in Upper Manhattan, with a sharp focus on seller representation while maintaining an extensive proprietary database of well qualified buyers with whom we work on a carefully tailored basis.

With an experienced group of industry professionals at its core, the employee-owned firm is divided into three complementary divisions: Research, Sales and Purchasing.  Our approach to real estate begins with outstanding quality Research, which underpins our strategic Sales model.  We also work with well-qualified Buyers on a carefully tailored basis. 

Harlem Lofts, 272 Lenox Avenue, Harlem, New York, 212.280.8866, info@harlemlofts.com, 212.280 8866.

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