February 28, 2023

February – 2023 Market Update

We, at The LevinKong Team, hope this finds you well. We are excited that the spring season and warm weather that accompanies it is around the corner. Along with many New Yorkers, we eagerly await al fresco dining, picnics in the parks, and all of our other favorite outdoor activities in this incredible city.

Spring is our longest and most active selling season in New York City real estate. It’s the time of year when buyers and sellers come out of winter hibernation to focus on their real estate needs before ducking back out to vacations and beach homes for the summer.

While we do anticipate some relief for our inventory-starved buyers, we do not anticipate our normal seasonal uptick. Many would-be sellers are far too comfortable with their low-interest rates to make trades that they would otherwise be making. In Manhattan, inventory levels are still at similar lows from this time last year, and in Brooklyn supply is down 7% from the already low levels.

We are seeing buyer activity start to percolate, which is putting pressure on tight supply. Manhattan saw demand increase by 7% last month, while Brooklyn saw a 5% spike over the same period. There are more vulnerable market segments and those that are outperforming the market at large. For instance, the one-bedroom co-op market in Chelsea has seen a 56% uptick in demand from last month, where there is currently less than four months’ supply. The townhouse market in Bedford Stuyvesant in Brooklyn has less than two months’ worth of supply, and contract activity is up over 30%. With these trends, we can predict that buyers will start to lose some of their leverage in the coming months.

Our luxury market just came off of its most active week in close to a year. Last week, more than 30 contracts over $4 million were signed in Manhattan, totaling $272 million. This activity is the result of sellers of luxury properties adjusting their expectations to be in line with buyer expectations, as well as some optimistic financial news making many more bullish than they have been of late.

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.