November Market Update

The LevinKong Team is so thrilled to see the continued activity that has returned to New York City- in our day-to-day activities, within our local businesses, and overwhelmingly, in real estate. November is traditionally a month in which we celebrate family, express our gratitude, and give back to the communities in which we live. As a team, we truly appreciate our role in the New York City community and strive to be positive, supportive, and charitably minded. We are also incredibly grateful for all of our clients that put their trust in us during this exceptional year.

Fueled by low interest rates, inflation, empty-nesters returning to the city, second home purchases, office and school reopenings, resizing and reprioritizing, and a general renewed passion for our dynamic city, New York’s real estate market saw one of its most incredible years. It has truly been a comeback story for the ages. This was so much the case that New York State’s ‘budget crisis’ turned into a $4 billion surplus past expectations for the fiscal year, largely due to NYC’s hot real estate market.

Specifically, in Manhattan, on average, price-per-square-foot for residential property has seen a 12% increase year-over-year and an 81% increase in pending sales. Supply is down 31% over the same period. Luxury real estate saw record-breaking transaction volume after a multi-year slump. We anticipate that this trend should be further enhanced by the reemergence of foreign buyers, who are returning to New York after the removal of restrictive travel bans.

In Brooklyn, a market that hasn’t skipped a beat since reopening last summer, we have witnessed average price-per-square-foot rise by 7.5% year-over-year. While this number is less than that of Manhattan’s increase, it is mostly due to the fact that the months leading up to last November (about the time that Manhattan’s market kicked back in) were already rather strong. A trend that started before the pandemic has only gained momentum. Many young professionals are eyeing prime Brooklyn neighborhoods as a first choice, in what tended to be a second option for many in years past. Another trend we’re seeing is Manhattan clientele eyeing Brooklyn investment properties due to the favorable dynamics.

Of course, different neighborhoods and inventory types have seen varied conditions. Midtown and the Financial District, for instance, are still lagging behind their uptown and prime downtown counterparts. Certain entry-level markets, while benefited by low interest rates, are still trying to climb out of the disproportionate loss of income that the pandemic caused for many of those would-be buyers. However, on the whole, the NYC real estate market is doing phenomenally well and we have every reason to believe that this will continue into the coming year.

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. Have a very happy, healthy, and abundant Thanksgiving!