Brokers: Contracts Up, Pessimism Somewhat Down

The New York Times reports that brokers have witnessed an increase in the number of contracts from June to the beginning of August. In the past, the spring selling season has begun in May, followed by a slower stretch in the summer, which makes this uptick in contracts like a late spring. Prices have not increased accordingly, and brokers and analysts are wary of overly optimistic interpretations. “My take-away is not that the market is turning, but that the market is not in free-fall anymore,” Jonathan Miller, the president of Miller Samuel, told the Times. “We still have a ways to go, but this is certainly good news,” he said. Tax incentives, lower prices, and low interest rates may have contributed to this increase in activity, but brokerages are aware that there is a lot of inventory still waiting to reach the market and that unemployment is still on the rise. Jorden Tepper, the executive director of sales at Century 21 NY Metro, told the Times: “I don’t think there’s anything to celebrate yet … [but] maybe I don’t have to change careers just yet.” Brokers, of course, have a different ideal than the general public. While they are hoping for a return to bubble-like statistics, hopefully once the market evens out, there can be a balance: a market healthy enough to support brokers, but reasonable enough that average New Yorkers can afford homes. Or, at least we can dream, can’t we?
Contract Signings Rise [NY Times]
Looking for the Bottom [Brownstoner]
Photo by Ron Givens