April Market Update
We, at the LevinKong Team, hope that you are safe, well, and enjoying the start of spring. In New York City, we welcome the renewed bustle on our sidewalks and the blooms that we look forward to all winter long. As we wrapped up the first quarter, we were reminded of New York’s resiliency and the world’s love for our incredible city.
The first quarter signaled the return of our housing market – as buyers from around the world, and around the corner, starting eyeing property purchases at a greater clip than we have seen since before the pandemic. Demand is significantly up. Currently 64% of available inventory is in contract across the market. This is up 76% year-over-year. And, while supply is entering the market, it is not keeping up with the level leaving the market. We currently have under 7,000 listings on the market and over 4,400 of those are in contract.
Renewed optimism and sellers’ understanding that property needed to be priced in line with the current market are behind this shift. Overpriced property is still not moving, and many of those listings have left the market, as those sellers realized that market improvement still is not accepting of aspirational price tags. Properties that closed in March spent, on average, over 100 days on the market. That will not be the case for properties going into contract in today’s market, as we have now seen two months in a row with weekly contract activity north of 300 per week. We are seeing sales volume on our team that rivals the most robust markets of the last two decades.
The current engine of our real estate market started with deep discounts at the top of the market and renewed competition at the bottom of the market; the latter fueled by fears of rising interest rates. Now we are seeing momentum across all segments, and a particularly strong showing in our luxury sector. The luxury market is roaring, as we have witnessed the longest run of 30 plus luxury listings going into contract per week in over 15 years. This resurgence began in early February, and we have been advising our luxury clientele to take advantage for months prior – and many have with fantastic outcomes.
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.