What a quarter! The first quarter of 2023 has finally come to an end, and it has felt like quite the rollercoaster.
We started off the year with looming predictions of a recession, inflation, and FED interest rate hikes. And the month of March brought its own fair share of Banking drama, resulting in large cash withdrawals from some regional banks.
Despite the rollercoaster of events, threats of inflation, bank bailouts, and increased interest rates, the NYC real estate market has thrived in almost all price classifications in Quarter 1 of 2023.
With signed contract volume up 33% compared to last quarter and up 30% as compared to February. While contract-signed activity is on the rise, it’s important to note that while some properties are attracting multiple bidders and lots of showings, others have virtually no showings. And this is largely dependent on asking prices. Buyers are very price sensitive in this market.
Luxury properties are trading at notable discounts; we saw a 12% off ask average in the luxury segment throughout March. For context, 2022 averaged 5%; in 2021, a record year for the luxury market, discounts averaged 9%.
With less competition and more negotiability, there is opportunity for luxury buyers. We’re excited for the Spring market.
