June Market Update

We, at the LevinKong Team, hope that you are safe, well, and enjoying the beginning of the season. Summer is upon us, and New Yorkers are out and about taking 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 all back in full swing.

Recent weeks have seen a moderate slowdown in contract activity, after a record-breaking start to the year as buyers were aggressively looking to beat the expected rate hikes. Of course higher interest rates are keeping some would-be buyers on the sidelines, but some of the recent slowdown is due to our typical seasonal pause in activity, as New Yorkers’ focus turns to travel and weekends at the beach.

While there is a lot of talk about the shifting market, renovated and well-priced inventory is moving. Overpriced and unrenovated properties are not faring as well. Anecdotally, we had two buyers get offers accepted this week in the exact same property and price category; one a renovated property, which had multiple bids and landed 3% above ask, and one an unrenovated apartment where our buyers were able to achieve a 6.5% discount off of the asking price.

Inventory is still incredibly low, but pending sales are down 14% from this time last year in Manhattan and flat for the first time in recent memory in Brooklyn. Real estate remains one of the best hedges against inflation, our rental market shows no signs of slowing down, and New York real estate is a historically high performing asset. Therefore, we expect a slowdown, rather than the significant market correction that many parts of the country are expecting.

Right now, it is imperative that sellers price correctly. For buyers, now is a time where opportunities will arise. Interest rates will eventually come back down, so it always makes sense to focus on the property attributes, your long term goals, getting the right value, and future appreciation potential. Mortgages can always be refinanced in the future; as the saying goes, marry the property, date the interest rate!

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!