January is over! And oddly, we’re yet to have an actual snow day in NYC, the longest stretch of time without snow ever recorded. We miss the NYC winter wonderland...but it’s kind of nice.
With the lack of snow and mild temperatures, it seems the real estate market is also starting to warm up. Showing activity has definitely picked up in the last couple of weeks. We’re seeing more cash buyers on the market as savvy investors find stability in the real estate market— a hedge against stock market volatility and inflation.
We’re also seeing quite a few out-of-state buyers, mainly parents purchasing for their children. Fun fact—more people are moving to NYC than pre-pandemic. A 3.9% increase since the pandemic shutdown.
However, while interest in NYC real estate is brewing, we’re seeing a lack of 'good inventory' on the market. Currently, inventory remains low, with a little under 6,800 listings on the market. The lowest it’s been since 2018.
While a lack of inventory is usually indicative of a seller’s market, that is currently not the case– at least not yet. We’re in a not-so-typical buyer’s market. And by that, I mean that there are opportunities for sellers and buyers alike.
While prices are 10%-20% lower than what they commanded at the height of the market in 2015 and 2016, mint condition and move-in ready properties in A neighborhoods will most likely trade quickly.
And on the flip side, if you’re a buyer currently in the market, sellers are a lot more negotiable. On average, properties sold in the past month have seen a 5.8% price cut.
Either way— opportunities abound on either side of the transaction. And as I always say, sell when there’s less inventory and buy when there’s less demand. It will be interesting to see where the market heads from here.
