The weather may still feel like winter, but we are finally in the midst of the spring market! Historically, March and April are the two biggest listings months, outside of September. So, how is the spring market shaping up in 2022?
Well, the short answer is, it depends!
Some market segments are in demand, some are not
While the overall market is still looking strong for sellers, what we’re seeing is that the market is also segmented.
What do we mean by that?
For starters, larger apartments are selling at a faster rate because people are looking for more space. After lockdowns and pandemic restrictions kept more city dwellers at home, buyers are eager for more space to spread out.
If you have an older apartment that needs renovations, there are a few things you should consider when selling. Inflation and supply chain issues continue to impact the cost of construction materials, making buyers more reluctant to jump on an unrenovated property.
If you want to sell a home that “needs some work,” you need to consider staging. Staging allows the buyer to visualize the potential of the space and they may be more inclined to take on the costs of renovation.
If you’re a buyer, there’s an opportunity here for you! If you can live with the current state of a home like this, until construction costs level out, you could land a great deal!
One area that’s doing well is renovated condos, particularly in downtown neighborhoods. So if you’re selling in this segment, you’re in a great position. If you’re buying, be ready to compete!
Where does the market stand?
Supply took a big jump up from earlier in March, up 6% week-over-week.
We haven’t seen a jump like that since the market initially reopened after the COVID-19 pandemic began. This is likely a sign that we’re continuing to get back to normal seasonal swings.
Market demand in Manhattan, signified by pending sales, is also on the rise with a .3% increase week-over-week.
Weekly new listings is also slightly down as we close out March. However, according to Urban Diggs, this is most likely due to schools being closed for spring break. The same goes for weekly contracts signed, which also saw a slight downtick the week of March 26th. Again, this coincides with school breaks and shouldn’t be taken as a sign of a slowing market.
Another interesting area to watch is the number of net positive listings on the market right now.
Supply the last few months has been down. However, we’re now starting to see an increase in inventory, which is a good sign for buyers!
We will need to keep an eye on whether or not this trend continues. As interest rates continue to rise, buyers may hesitate to jump into the market.
For now, the spring market still remains strong. Though, there are pockets of the market that may do better than others.
As always, if you have any questions feel free to reach out to us anytime!
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