January Market Update

We, at the LevinKong Team, hope that you enjoyed the warmth of the holiday season and that your year is off to a great start. While we are looking forward to a fantastic year ahead, we would like to thank all of our clients, agent partners, and advocates who helped our small (but mighty) team rank #1 for Keller Williams in all of New York City, by both sales volume and production. We are incredibly grateful for your trust and support.

The NYC real estate market of 2021 truly had a comeback story for the ages. At the start of last year, the narrative was heavily weighted against the city. Inventory levels, particularly in Manhattan, were far outstripping demand, causing many to predict a lackluster year at best. That abruptly shifted as the year produced transaction volume unlike that of any year in recent history. The fourth quarter saw the most transactions in a quarter in over 30 years. Annually, inventory hit levels not seen since 2008; however, it felt like an inventory constrained market for much of the year. This was because contract activity eclipsed that of the past two market peaks (2007 and 2015), as well-priced inventory disappeared as soon as it hit the market.

In Manhattan, the start of the pandemic and the uncertainty that it brought sucked approximately 9% of value out of the market. In 2021, market dynamics, including backlogged demand and value-seeking buyers, course-corrected and put us squarely back to 2019 pricing. During that same period, the Brooklyn market held relatively steady. Our expectations are that we will see a rise in price in Manhattan, perhaps bringing the market back to 2018 levels, and that the Brooklyn market will see even more significant gains this year.

Anticipation of a strong bonus season, inflation, and rising interest rates should all put demand pressure on a low inventory market. At the same time, the market for trophy properties and funding for ambitious new development projects are demonstrating the enduring allure of this aspirational city. Also, international buyers are returning and once again looking towards NYC as a primary investment target.

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.