For the longest time, real estate was known for its seasonality. Typically, business would slow down in the summer and pick back up in the fall. But, COVID, much like in other industries, has completely shifted this precedent.
In 2021, as the market continued to rebound from the pandemic, almost one in four apartments (24.3%) went into contract within a month— the highest share since 2017. However, with higher mortgage rates pushing down demand, sellers can no longer take quick sales for granted this year. In December of 2022, just 8.4% of homes on the market went into contract within a month.
While COVID certainly altered seasonality for the NYC real estate industry, it’s important to note that before the pandemic, the internet and the widespread use of social media had already diminished the impact of seasonality on sales as buyers could tour apartments from the comfort of their homes even from outside NYC. And as a result, we experienced a rise in buyers buying sight unseen even before the pandemic.
As the NYC market stabilizes, it will increasingly resemble pre-pandemic market conditions. And we also expect seasonality to make a return! So, when is the right time to sell in a post-pandemic world?
Streeteasy data from NYC co-op and condo sales indicates that March is the best month for sellers looking to decrease days on the market. While early fall is also another opportune time to sell and a typically busy season, homes put on the market in spring are still more likely to sell faster and above asking than in fall.
Apartments put on the market in the first week of March typically go into contract 16 days earlier than comparable homes listed during other weeks in the year, as buyers usually jump back into the market in spring.
Conversely, the worst time to list is the second to last week of the year. Due to lighter buyer competition, homes listed during this holiday week typically go into contract 29 days later.
So, with seasonality making a comeback and the NYC market stabilizing after three-odd years, we look forward to a busy spring!
