When Opportunity Knocks

Now that the spring market is behind us – let’s review!

In many ways, activity in Spring 2023 mirrored Spring 2019 numbers. We regularly saw 1,000 or more units going into contract each month, which is consistent with pre-COVID activity. However, this spring did have some head-scratching ups and downs. For example, one week would be extremely busy with tons of showings and offers. Then the next week would be completely dead. The spiky spring was evident with sellers and their new listings as well. One week would be consistent with historical norms of 500-600 apartments coming on the market in a single week, but seller listings would suddenly drop to 300 per week for no apparent reason.

This erratic behavior was seen in property values too. On the whole, property sale values skewed lower, giving buyers an advantage in negotiations. However, value also depended on when that seller released their property. Was it in a high week or a low week? Of course, results were swayed by the condition of the apartments. Fully renovated listings priced “right” according to buyers would often sell within 30 days and fetch the seller’s asking price or a little above. However, most sellers were finding out what that “right” price was while their property was on the market. That meant more days on the market and about a 10% discount from the original asking price.

So what does the summer hold? I think it holds opportunity!

There are approximately 7,500 listings on the market as I’m writing this, and that number is starting to decline, which is normal for any summer. But sellers who are out on the market this summer are serious about moving their property. They could be the ones that “need to get out.” When I’m representing buyers right now (depending on the property), we’re getting some pretty nice opportunities.

So, is this a good time to purchase? That all depends on you and your personal needs, but overall, yes! Sellers are ready to do deals. If they’re out there this summer, in this buyer’s market, they’re serious. They understand what’s happening and are choosing to stay on the market to cut a deal this summer.

If interest rates are holding you back, maybe it’s time to look beyond a typical 30-year fixed rate. A 15-year or even a 10-year interest-only product (if the co-op allows) will get you a lower rate for now, and you can always refinance your loan later when rates go down. Taking advantage of these much more fluid prices now, while opportunity is knocking, is the best way for you to stop wasting money on rent! Buyers who buy now will be very happy sellers in 5-7 years.

If you’re looking to buy a Manhattan home, this summer could be very opportunistic! So between trips to the beach and Europe, take time to get pre-approved and buy your dream home!