The longest month of the year is finally over! It may have felt like a full 365 days, all crammed into one month with all the breaking news with many extreme highs and extreme lows, but we're here to tell you that it wasn't all bad, at least for real estate.
This past fall ended as the most active fall season since 2021, and the momentum has carried over into 2025. We saw a 26% increase in contract signed activity in Q4 2024 as compared to Q4 2023. Note: We're highlighting an increase in contract signed activity, not an increase in pricing-- which remains at the same level as the past two years.
December and January are usually reliable barometers of what the Spring market may have in store for us, and it's looking good (so far). The volume of showings, the volume of bidding, and the volume of inquiries all point to an active market that is not over-supplied and has shortages in specific segments.
Some properties that were muted in the second half of 2024 are finally seeing some movement. However, price remains paramount, and bidders are price-sensitive.
Although inventory is still significantly low, with 5,504 listings currently on the market, the historical January average is just over 6,000. As we get closer to Spring, a healthy volume of new inventory is starting to enter the market.
Advice for sellers: Buyers are starting to come off the sidelines, especially in the luxury market, and are more open to renovation projects; however, price sensitivity is still at an all-time high. Price it right, and the market rewards you with a quick sale and minimal discount.
Advice for buyers: Buyers are losing leverage as some start coming off the sidelines. Spring of 2025 is gearing up to be very active for the NYC real estate market. So, if you're actively looking, this may be the time to pull the trigger. The best buying opportunities are in those properties that were built prior to the materials and labor costs surge of 2021-2023. Find value in unrenovated units and co-ops. Bid up for views, bid up for location and size.
In the meantime, have a lovely February!
