December – 2023 Market Update

We at the LevinKong Team hope you and your loved ones are well. The holiday season is in full swing, and the city streets are bustling with locals and tourists enjoying all that this magical time of year has to offer here in New York.

Our homes are essential to our family and holiday gatherings this time of year, and it is not lost on us how special these spaces are for making treasured memories. As we reflect on the year, we are so grateful to our clients for allowing us the privilege of helping them find new homes and appreciative of our past clients, advocates, and agent partners who put their trust in us.

Low inventory and lower demand levels characterized the 2023 housing market in NYC. Some neighborhoods and property types performed very well this year, and others seemed to get punished by the constrained and very selective buyer pool. Interest rates have decreased significantly, and we expect this trajectory to continue next year. This trend should free up inventory and pull sidelined buyers back into the market. “When the dust settles on 2024, it’ll be a better year than 2023 was in the housing market,” Jonathan Miller, founder and CEO of Miller Samuel, said.

This uptick was very much noticeable in December of this year. Pending sales in Manhattan were up 42% from this time last year and up 39% in Brooklyn. Price per square foot was relatively flat this year in both markets. This only tells part of the story because some market segments saw gains while others saw losses. We also need to consider all the properties that were taken off the market, either because they were priced too high or they weren’t compelling enough for buyers to engage. There will be a lot of transitions next year, but we are generally optimistic and look forward to the return to a more normal market.

There are many ways to make this dynamic and intricate market work in your favor. 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. We wish you a wonderful holiday season and a happy, healthy, and prosperous new year!