June – 2023 Market Update

We, at the LevinKong Team, hope that you are doing well, and enjoying the beginning of the season. Summer is upon us, and New Yorkers are out and about taking full advantage of some of their favorite activities. Restaurants, entertainment venues, rooftops, parks, beaches, and all the perks that our beloved city has to offer are back in full swing.

Temperatures weren’t the only thing heating up in June; the heat in the NYC real estate market also turned up. Our listings saw more offers than the previous months, many with multiple bidders. We even broke some price records in downtown Manhattan and Brooklyn. While we usually hold off bringing on new listings in anticipation of the summer slowdown, we have been going against our conventional wisdom and it has been paying off. It is still a lumpy market and not all geographies and property types are enjoying the ride. Specifically, certain Upper East Side, Midtown, and Financial District areas are seeing properties languish on the market, even when competitively priced.

In general, lower supply has kept the market balanced. While we are seeing pockets of both buyers’ and sellers’ markets concurrently, as a whole, leverage has been relatively even of late. Manhattan supply is down 2% from last month and 4% from last year. Brooklyn inventory is down an incredible 11% year-over-year and buyers are found competiing for the dearth of available property. The rental market is continuing to be a juggernaut and record-level prices are still in play.

New Yorkers aren’t known to be the most patient of people, and over the last two decades we haven’t seen them wait on the sidelines for extended periods of time. The market uptick is most likely a combination of this phenomenon and the result of some economic tailwind as well. The banking crisis appears to be at bay and employment numbers are still robust. Janet Yellen, when speaking of the chances of a recession, recently said, “my odds of it, if anything, have gone down.” Jerome Powell, however, has not ruled out the possibility of further rate hikes. Whatever the case, New York is proving while it may get knocked down, it always seems to get up stronger each time.

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. Enjoy your summer and please let us know if we can answer any questions you may have about the market, or how best to navigate complicated decisions. Have a great Fourth of July!