Manhattan Residential Sales Market Picks Up Steam in May

For now, at least, the market has spoken. Over the past two months, we have predicted the market was at a crossroads. With the market relatively even both parties (buyers and sellers) had some leverage on their side and only time would tell what side would win out.

For sellers, it was the lack of inventory. Despite predictions of major price corrections nationwide- the residential real estate market has maintained its strength. The major factor keeping the market at its current pricing is the lack of supply. ?

For buyers, it was the rising interest rates and the overall downswing of the economy. Not only have interest rates begun to tick back up again, but there were also a few major bank failures that point to broader problems in the economic marketplace.

For now, at least, it seems the lack of supply has forced buyers to continue meeting or sometimes even exceeding sellers’ asking prices. There is simply no greater driver of a market than scarcity- and we are seeing that play out in real-time.

As evidenced by the chart above, demand has increased as supply has continued to decrease over the past 30 days. Not only has the market held off any price corrections, but for the next few months we are in seller’s market territory. Traditionally, inventory continues to compress until after Labor Day, and we don’t see any signs of that changing this year.

If you are a seller, there is still plenty of liquidity left in the market to list your apartment. If you are a buyer, be prepared to have very little if any negotiability on your side.