Memorial Day weekend usually signals the peak of the spring market. As we head into the summer months, we are seeing some signs of the hectic pace of the market through last year slowing. However, this doesn’t signal a major crash or downturn. What we’re seeing is simply a normalizing of the market in a post-pandemic world.
Let’s take a look at where things are as we head into the summer months.
Manhattan real estate numbers at a glance
In terms of supply, we’ve seen an increase over the last few weeks. This is what we would expect to see around Memorial Day, as the spring market hits its peak. While supply is down from 2021, it’s not really comparing apples to apples, considering how frenzied the market in 2021 was, as we recovered from the COVID-19 shutdowns.
If we look at overall demand, things are largely staying flat in Manhattan.
With supply ticking up and demand drifting sideways, now is a good time for would-be buyers to keep their ear to the ground. You may have more negotiating power in the coming months, ahead of the fall market.
Weekly new listings and contracts signed are also on a slight downtick. Part of this could be down to the holiday weekend, but still indicative of normal seasonal trends this time of year.
The market is normalizing, what does that mean for buyers and sellers?
As we are starting to see more normal seasonal trends, as compared to 2020 and 2021, buyers and sellers should keep a few things in mind.
The market today is still hot for sellers…depending on a few factors.
One, buyers are still more interested in updated, larger homes in prime neighborhoods. There is still scarce inventory in homes that meet these criteria, so if you are listing in a prime neighborhood with a renovated apartment, you’ll likely see a good amount of competition if you’re a buyer.
Two, even though mortgage rates are on the rise, buyers are still hopeful to lock in financing now before things potentially go up. With the rental market still seeing soaring prices, more and more people are taking the leap to buy.
So, if you’re looking to sell, now is still a good time to list.
If you’re looking to buy, don’t be deterred by possible competition, you still have negotiating power!
As we see the peak of the spring market you will likely face less competition over the summer months, making your ability to negotiate easier. If you’re looking at homes that could use a little work or in less prime (but not bad!) neighborhoods, you’ll also have more in your favor.
Getting back to normal seasonal fluctuations is ultimately a good sign of things to come! As always, if you have any questions about buying or selling, we are always here to help.
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