Typically a slower Summer month, August did see a decrease in contracts compared to an extremely busy Spring and Early Summer. There were still 1,169 units signed in total, and even at the lower volume would still represent a very healthy month. With mortgage rates remaining low, the US economy growing, and New York's high vaccination rate, we expect to see an uptick in September.
Luxury Market 27 Contracts were signed last week at $4million and above. Despite a week that included Labor Day and Rosh Hashanah, the luxury market topped the 2018 Labor Day-week record of 20 contracts signed.
Rental Market Manhattan is experiencing a rental market implosion with many instances of multiple bids and excessive over-bidding, a clear indicator that the rental market is under-supplied in areas and the COVID-related pricing dip was too excessive in some segments. Activity has soared and pricing has rebounded notably. A relief for residential landlords across the city after last year's market plunge.
Goldman Sachs now sees US expansion in 2021 at 5.7%, compared with an expectation of 6% published at the end of August. Weaker growth will follow through into more of a pickup in 2022. Goldman raised its forecast for 2022 to 4.6%, up from 4.5% previously. Explaining the downgrade for 2021, GS estimates American consumers are likely to spend less amid the Delta variant’s emergence, fading fiscal support, and a switch from demand for goods to services. Supply-chain disruptions had hit inventory restocking too so while there may be demand, the supply won’t be there.
Compass Continues to Grow Compass agents now serve around 45% of the entire US population: one service Compass agents provide to our clientele and their networks is the ability to refer them to quality professionals around the country. If you ever need help finding a quality agent in another market, please don’t hesitate to reach out.