August Market Update
We, at the LevinKong Team, hope that you are safe, well, and enjoying your summer thus far. While summer is typically a slower season for NYC real estate, we are still seeing a steady stream of deals, but not at the level in which we were seeing during our active spring market.
In Manhattan, the market has been characterized by low inventory levels. Supply is down 18.4% year-over-year and 5.3% from the prior month. At the same time, our seasonal slowdown has not caused the same impact on demand, which is currently flat from the prior month. The ratio of active to pending, also known as market pulse, is at a very favorable 0.8 (80%).
Weekly contract signed activity is up 5%, averaging around 300 per week. A normal July tends to see about 800 signed contracts; however, we recorded a robust 1,327 this year. The downward force on supply and strong buyer activity has had a significant impact on negotiability. At last year's peak of pandemic discounting, which occurred in June, the average listing discount was 9.2% from original asking price and 6.1% from last ask. Now that average discount is just about cut in half, down to 4.9% and 2.7% from last ask.
In Brooklyn's incredibly active market, the average discount is currently 1.75% and only 0.3% from last ask. Supply is also down significantly, to the tune of 21% year-over-year and 3% from the prior month. At the same time, pending sales are up over 200% year-over-year and the average price-per-square-foot is up nearly 10%.
We are still seeing a very active luxury market, which is being fueled by prices that are far below the peak numbers from 5 years ago. A lot of this momentum is being driven by second-home buyers from other parts of the country and the world. Low interest rates, ramped up liquidity among the world's wealthy, hedges against inflation, and the relative weakness in the new development sector are all playing their part in this high level of luxury sales across our market.
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. Enjoy your summer and please let us know if we can answer any questions you may have about the market, or how best to navigate complicated decisions.