Flatiron & Nomad Real Estate Market Prices, Trends, & Forecast 2023

 

If you’re considering entering the Flatiron & Nomad real estate market as a buyer or seller in the next year, you’ll want to understand how things currently look in the local market. This will impact the speed you move and the type of initial offer you’ll make if you’re shopping for a new home.

If you’re selling, knowing what the market is doing will help you choose an asking price for your home while also managing your expectations for what type of initial offer you might receive. Below you’ll find several emerging trends and possible predictions for how the Flatiron & Nomad real estate market might take shape during the next twelve months. If you still have questions after reading this, contact the Asset Advisory Team, who will gladly assist you.

Compared to luxury properties in more celebrated neighborhoods, the prime real estate surrounding Madison Square Park flies under the radar. The Square has been one of Manhattan’s most exclusive residential areas ever since mansions sprouted up there in the mid-1800s. Today, two niche neighborhoods frame Madison Square Park: NoMad (North of Madison) and the Flatiron District.

At their most luxurious, these properties feature at least four bedrooms, four bathrooms, and 3,000 square feet. These handful of elite properties are listed for $10 million and above. Penthouse condos command stunning city views; their interiors are crafted from lasting materials like marble and oak. Shared amenities like the 24-hour doorman and concierge add a blanket of privacy suitable for the highest-profile buyers.

 

As of April 2023, our agency shows 87 active listings in the Flatiron District. The vast majority of these properties are listed for $1 million and above — clearly, Flatiron is a privileged area of Manhattan. Well-connected agents typically have the inside scoop on off-market properties, adding to the exclusive allure of this neighborhood.

 

NoMad is often compared to the Flatiron District — the two bordering neighborhoods are similar in size and feature unique, high-value properties. As of April 2023, our agency shows 114 active listings in NoMad. All but a few are priced at $1 million or above. The top tier of NoMad real estate comprises 23 properties listed for $5 million and above; the neighborhood features one of the city’s earliest skyscrapers (212 Fifth Ave.). 

Home prices were climbing steadily at the beginning of 2022, but they dropped sharply as the year went on. This trend will likely continue into 2023, given that interest rates remain high. The general state of uncertainty about the future of the national economy is causing many potential buyers to become hesitant about shopping for new homes. There’s reason to be optimistic that this is only a temporary setback and that the market should rebound quickly from these challenges. However, the effects could still be felt throughout the next year.

 

It’s possible that rates will continue to increase this year, although some industry leaders are hopeful that rates will hit their highest point during 2022. The Federal Reserve has publicly expressed interest in lowering rates, but most people understand that inflation will have to get under control before a rate decrease could make sense. Since it’s hard to say with any degree of certainty when it will happen, it’s impossible to predict when rates might begin to come down.

 

Rent was increasing fast throughout New York City throughout the spring and summer of 2022, but price hikes began to slow down during the fall and winter. The average cost of rent came down in January 2023, but the most likely scenario is that prices will increase in the coming months. 

The housing market across the entire country shifted dramatically after the onset of the COVID-19 pandemic. The Federal Reserve dropped interest rates significantly when the pandemic began ravaging the country. Like everyone, they were searching for the best possible response. Many buyers jumped at the opportunity to lock in a home with a lower interest rate, and average sales prices rose exponentially because of the increase in demand. As things began to return to normal in 2022, interest rates started climbing, and buyer demand slowed. Home prices haven’t dropped dramatically, but they are not increasing like in 2020 and 2021.

 

Buyers usually are more active during the late spring and early summer. The return of tax refunds and the end of the school year coincides nicely with the return of longer days and warmer temperatures. People prefer to shop for homes when the weather is nicer, and houses often show best in natural light. The market stays hot through August before trailing off in September and October. By November, many would-be buyers are tied up with upcoming holiday plans or end-of-year work goals. It shouldn’t come as a surprise if average sales prices are lower during winter.

 

As a state, New York ranks 15th among all 50 states in the number of foreclosures. Given that New York has the fourth-highest population of any state in the country, the fact that it’s only 15th on the list is a positive sign. Nearly one of every 4,300 homes in New York is in foreclosure, and the top five counties for foreclosures in December 2022 were Richmond, Nassau, Orange, Chautauqua, and Suffolk.

 

Homes in the Flatiron District have a median value of nearly $1.6 million. This is significantly higher than the national average of $244,000. 78% of homes are valued at more than $750,000.

While some investors will balk at high interest rates and general uncertainty in the economy, this could be a great time to invest. The Flatiron District is one of the most popular areas in Manhattan, and landlords will continue building interest in short-term and long-term rentals. Purchasing property now allows you to lock in a sales price and begin building equity (and generating income) while leaving the possibility of refinancing your loan later on if rates come down.

As you can see, the market is still correcting itself after multiple years of unprecedented activity. Some may consider what’s happening right now to be a recession, but most people feel that the market is simply moving back to normal after the events of 2020 and 2021. Despite the present challenges, the housing market always shows an ability to respond and return stronger than before. This should continue to be the case moving forward.

The Asset Advisory Team takes time daily to study what is happening in the Flatiron & Nomad real estate market. They use their expert knowledge and insight to educate clients on handling each transaction with wisdom. They would love to team up with you when you decide you’re ready to buy or sell a home in the area, and they will work tirelessly to ensure that all of your needs are met.