NYC Real Estate - May 2023

Greetings, and I hope you are doing well.

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Manhattan Overview:?

The market has favored buyers since March 2022, but we've recently noticed two notable directional changes in March and May. However, these shifts don't indicate a transition to a seller's market. Looking back at the previous buyer's market from October 2015 to September 2020, we see similar patterns with temporary changes in March and May, and in 2019, the peaks shifted to April and June.?Spring typically sees robust demand, favoring sellers within the larger trend favoring buyers.?

Historical data also suggests another spike in October, another period of high demand that temporarily favors sellers.

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Manhattan Supply

Similar to previous years, the supply level in Manhattan is rising as it reaches its peak in June. What implications does this have for:

For buyers, the rising supply level in Manhattan means more options to choose from and potentially better negotiating power.

On the other hand, sellers face heightened competition and may need to work harder to make their properties stand out.

Contract Activity

In line with the typical pattern observed during spring, contract activity in Manhattan reached its highest point in March, experienced a contraction in April, and peaked in May. What implications does this have for:

?In Manhattan, the seasonal contract activity pattern creates increased competition among buyers. Sellers experience heightened engagement, with multiple offers and favorable selling opportunities.

Manhattan Listing Discounts

Median listing discount receded for the first time in 9 months, so what does this mean for:

The receding median listing discount means temporary unfavorable prices for buyers and temporary favorable prices for sellers. Both buyers and sellers should stay aware of market trends.

Advice

Advice for Sellers:?

If your listing needs to generate more traffic or bids, it could be due to a market problem, a product problem, or a price problem. In this research note, we can rule out a broad market problem. Product problems relate to the unit's condition, views, and lighting. If the market and product are not the issue, it's likely a pricing problem.?Analyze local trends to determine if you're in an underperforming or overperforming sector.?Given the favorable conditions with high deal volume and liquidity, adjust prices for properties aligned with the market. Seize the current market momentum before any potential slowdown.

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Advice for Buyers:??

If you want to make a timely purchase, be aware that the current market conditions offer little leverage.?It's a balanced marketplace with supply and demand in a neutral position. Rental prices are high, and motivated sellers prefer to avoid accepting low offers. The price decline observed since last May has dissipated, especially for well-located, renovated properties with desirable views. As the market strengthens seasonally, your negotiation power decreases. We're likely approaching the peak of this seasonal cycle. If you have time, historical patterns suggest leverage will shift in your favor by the end of summer. Tighter supply conditions may offer better terms for value-oriented buyers. Keep an eye on this upcoming period for potential investment opportunities.?

Brooklyn Report

Queens Report

Have questions about NYC market?forecasts, trends, or anything else real estate-related? I'd love to connect - reply to this email to schedule an appointment.

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Data Source: UrbanDigs, Elegran

The Sondhi Team:?Nishant is a Real Estate salesperson in Manhattan and Brooklyn and the Founder of the Sondhi Team, and his team specializes in Residential Real Estate. He is passionate about helping buyers and sellers navigate the New York market, save them thousands of dollars, time and make the process enjoyable. His strong analytical, marketing, and negotiation skills developed during his MBA and over 10 years of sales experience give him a unique edge to serve his clients best.