April Market Update

The LevinKong Team hopes that you enjoyed the holiday weekend and the start of spring. In New York City, we welcome the warm weather, al fresco dining, rooftop gatherings, and the blooms that we look forward to all winter long. The first quarter wrapped up on a high note, as NYC’s housing market continues to show strong performance.

The first quarter was a busy and fast paced one here in the city. Manhattan’s market pulse, the ratio of pending to active listings, was up 18% year-over-year, while Brooklyn’s red hot market saw an increase of 48% over the same period. Luxury sales, which were occurring at an unprecedented rate have slowed, but are still performing well above that of recent years. Well-priced and smaller apartments saw a big uptick in activity, while blue chip Manhattan locations and prime Brooklyn neighborhoods were big winners as well.

Rising interest rates have led some buyers to pull back their budgets in order to maintain the monthly costs that they had targeted in the lower interest rate environment. This is happening predominantly in the sub-$1.5 million market segment. Higher price points historically tend to be more immune to this reaction due to the high liquidity of the consumers at this level. Hedges against inflation are still a driving force, and as rents continue to soar we are experiencing heavy demand from investor clients.

In-line with normal seasonal activity, April has seen a bump in supply, specifically 11% from the prior month. However, due to brisk weekly contract activity, buyers are not feeling the relief that they were hoping for this spring. While we are not expecting the second quarter to be quite as robust as the first, sellers need not worry as demand continues to outpace supply.

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.