Are We Nearing The End Of The Seller Market In New York City Real Estate?
The Manhattan real estate market remains very competitive. Monthly contract activity is still running 30% above seasonal averages, with monthly new supply running almost 25% above typical levels. After a year-plus buying frenzy, the market is showing signs that it may be slowing down. Demand appears to be moving from white-hot to red-hot, suggesting that Manhattan may be moving from a seller’s market toward a more stabilized market.
At the same time that sellers are finally stepping up, buyers might be ready to take a breather. It might not look like much, and it’s certainly not a trend yet, but the number of contracts signed in April 2022 was lower than in March 2022.
They were also lower than those in March and April 2021. April and May are typically the biggest months for signed contracts, and the expectation is that the number of contracts would rise, not fall, from March into April. So, a dip now, albeit slight, suggests that Manhattan’s buying frenzy may be settling down to more typical levels.
Granted, buy-side activity remains about 30% higher than usual, but since new listings are also coming in at an elevated rate.