June Market Update
We, at the LevinKong Team, hope that you are safe, well, and enjoying the incredible spring weather of which we have been the fortunate recipients of late. In New York City, we are so happy to see the streets, restaurants, local businesses, and parks bustling with exuberant New Yorkers once again.
As the city looks forward to a complete reopening date of July 1st, which includes our beloved Broadway theaters, there is a palpable optimism. Many offices are open, and many more are eyeing a post-Labor Day reactivation. Vaccination, low COVID-19 numbers, and initial lower prices have had a big impact on our housing market’s faster-than-expected turnaround. New Yorkers are buying, and so are large numbers of people from around the region, the country, and the world!
What started with lower prices – on average approximately 9% below pre-pandemic numbers – has now shifted to a competitive market with upward pricing pressure. In Manhattan, 72% of currently listed properties are now in contract. We are seeing around 400 signed contracts per week, and over 1700 signed contracts in the last 30 days, which is an increase of 655% from the prior year. Buyers are getting some good news as supply has ticked up a bit, specifically 7.5% from the prior month.
This is still a segmented market, and specific neighborhoods and property types are performing differently. A lot of the recent buying has been tied to families trying to move closer to their children’s schools or to larger family-sized apartments. Areas that are tied to office buildings, theaters, and entertainment have not seen the same level of activity. For instance, currently 87% of The Upper West Side’s inventory is in contract, while only 35% of Midtown Center’s inventory is pending. This will change as younger office and service workers start eyeing these locations again.
We are also seeing a significant number of empty nesters selling their suburban homes at the top of the market and coming back to the city. Second home buyers from around the country and the world are making purchases as well. Many of these are occurring in the luxury segment, which is still witnessing a historic run of 30 plus luxury contracts signed per week, the longest in almost two decades.
Brooklyn, which came back to life last summer (six months before Manhattan did), is experiencing an even more profound sellers’ market. Supply is up 42% year-over-year, and demand is up 275% from the prior year. Inventory is coming to market, but it cannot keep up with the level of demand. Median sales price is up 11% over the same period.
Even our rental market, which took the biggest hit during the pandemic, is returning to life. Rental demand is ramping up and landlord concessions are disappearing. Lease activity is up 450% year-over-year. The new development sales market is still ripe with discounts and concessions; so, many of our savvy investor clients are looking to take advantage of the burgeoning rental demand and softness in this market sector to create incredible investment opportunities.
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.We, at the LevinKong Team, hope that you are safe, well, and enjoying the incredible spring weather of which we have been the fortunate recipients of late. In New York City, we are so happy to see the streets, restaurants, local businesses, and parks bustling with exuberant New Yorkers once again.