February Market Update

We, at the LevinKong Team, hope that you are staying well and keeping warm. It was a cold and snowy January here in NYC, which led to some beautiful postcard-like scenery. However, the cold didn’t manage to keep buyers away as it often has in years past.

Manhattan experienced a robust 1,000 plus contracts signed in January. That is a significant uptick from the same month last year. Year-over-year Manhattan demand is up 29.5%, while supply is down 31% for the same period. The market pulse, the ratio of active to pending listings, is currently at .83, which is almost double that of this time last year. Our supply levels are ticking up modestly, perhaps signalling that we are moving past our supply bottom. Even as more inventory hits the market, there are buyers ready to pounce due to a confluence of rising interest rates and the anticipation of upward price action. The median sales price in Manhattan, now $1,230,000, is up 12.3% year-over-year.

The Brooklyn market is also seeing a modest uptick in inventory levels, however still down by 25% from this time last year. Pending sales are up 22% year-over-year and the market pulse in the borough is currently 1.17, 60% higher than this time last year. It’s a seller favored market and we don’t anticipate that changing anytime soon. That being said, the median sales price of $950,000 in Brooklyn is only up 5% year-over-year. With Brooklyn the preferred target for many of our buyers, we still see this as a favorable time to get into the market, and many of our investor clients are agreeing.

The days of rental deals across the city are long gone. We are now seeing rental demand and average rental prices significantly higher than even pre-pandemic levels; this is spurring more investor activity. Another trend which doesn’t seem to be slowing down is the high level of townhouse sales in both Manhattan and Brooklyn. Additionally, renovated units are selling significantly faster and at a major premium over unrenovated units. This is, in large part, because of supply-chain issues, higher costs, and work delays. Lastly, we are continuing to see a high volume of luxury sales as high-net worth buyers from around the county and the world look to NYC as a prime target for investments and second homes.

With proper guidance, there are many ways to take advantage of this dynamic and intricate market. More than ever, a data-driven, research-based approach, rooted in decades of experience, will equip our clients to thrive in this environment. Please stay safe and let us know if we can answer any questions you may have about the market, or how best to navigate complicated decisions.