Spring – 2025 Market Update

We at the LevinKong Team hope you are doing well and enjoying the first days of spring. March has been a rollercoaster ride as we experienced incredible weather early and then a sudden return to winter. We are now fully planted in the highly anticipated spring season. In New York City, we welcome the renewed bustle on our sidewalks and the blooms in our many parks and tree-lined blocks. As we wrap up the first quarter, we also see strong signs of a spring return in our real estate market (although the wide variance in economic indicators and forecasting has certainly kept us on our toes).

We are seeing strong recovery momentum in our housing market as deal volume continues its upward trend. No longer holding out for interest rates to fall dramatically. Both buyers and sellers have adapted to the new norm. Sellers are experiencing significant improvement in their results, as many have become more realistic in their asking price. However, this has not been evenly distributed across the entirety of the market, where, in many prime locations, sellers do not need to lower their expectations to hit market demand.

As a whole, Manhattan’s inventory has crept up 2.3% year-over-year, with 6,500 units currently on the market. Pending activity is up 17.5% from this time last year, putting pressure on the current inventory, which has led to a 6.2% appreciation in average price-per-square-feet. 10% of sales are happening above their original asking price. In Brooklyn, supply has ticked up 8% year-over-year. However, there are still only 3 months of available inventory, a sign of a strong seller’s market. Over 20% of trades occur at an over-the-original asking price. Interest rates have been creeping down, and we may see more substantial movement to come. This should bring even more buyers into play.

With proper guidance, many ways exist 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.