KELLER WILLIAMS NYC | 379 Broadway New York, NY 10013

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April Market Report 2019

April 15, 2019

After a long, chilly winter, New Yorkers are finally experiencing the long-awaited warmer days of spring! As heavy clothes are buried in the back of closets, the city’s rooftops are beginning to bustle with happy hour patrons, and sidewalk-dining season is in full effect. 

 

Concurrently, we seem to be in the throes of a very welcome active spring market. Spring is always our busiest buying season. This year, as the flowers begin to blossom, buyer confidence seems to have come back into bloom as well. As we have been reporting, this activity and buyer enthusiasm are more pronounced in certain market segments and property types.

 

In general, the U.S. economy is performing well and the effects of low interest rates and an advantageous home-buying environment are fueling increases in both deal volume and velocity. Consumer confidence is high; we are seeing strong labor market numbers and rising wages, and 1st quarter GDP grew at a blistering 3.2% – far outperforming the 1.9% forecast. 

The co-op market has been the better performing segment of our market. Anecdotally, we have had multiple co-op listings of ours go into contract over the past few weeks. One property recently received multiple bids and went into contract in less than a week on market. For those who have been watching our market over the last year and half, this has not been the norm. Where prices had been on the decline, we have witnessed a flattening out. Fifty percent of actively listed co-op properties in Manhattan are in contract. Pending sales are up 15% from the prior month and 13% from the prior year, and there is a seller-friendly five months of currently available inventory. These are all strong indicators of normalcy returning to the co-op market.

 

The condo market has seen some favorable indicators as well, but the story is not all positive for sellers of this asset class. The resale condo market has seen pending sales activity increase 13% from the prior month, and 6% from the prior year. Those are good numbers; however, only 30% of current condo inventory is in contract. Price-per-square-foot is also down approximately 5% from last year. The real buyer opportunity lays in the new development condo market – which is still characterized by an overabundance of supply. Here, we have seen pending sales down 19% from the prior year, and median sales price down almost 10% over the same time period.

 

Again, this is not a one-size-fits-all market, and different neighborhoods, price-points, and property types are presenting markedly different levels of opportunity. Supply, sales pace, price movement,and discount expectations are not the same throughout the market. This is a sector where understanding the numbers and trends is of critical importance. There are still fantastic investment opportunities, but there are now also equally compelling selling opportunities.

 

As always, please reach out with any questions on how you can take advantage of these current trends, or how to protect your real estate assets. Our team also offers a wealth of knowledge regarding specific trends or segments of the market. The LevinKong Team is available to serve all your New York City real estate needs, and those of your friends, family, and colleagues. Please let us know how we can assist you!

 

“The real estate market is thawing in response to the sustained decline in mortgage rates and rebound in consumer confidence – two of the most important drivers of home sales. Rising sales demand coupled with more inventory than previous spring seasons suggests that the housing market is in the early stages of regaining momentum.” – Sam Khater, Chief Economist at Freddie Mac

 

“The real estate market is thawing in response to the sustained decline in mortgage rates and rebound in consumer confidence – two of the most important drivers of home sales. Rising sales demand coupled with more inventory than previous spring seasons suggests that the housing market is in the early stages of regaining momentum.” – Sam Khater, Chief Economist at Freddie Mac

 

 

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