The moment – This is the time when a purchase or a rental really speaks to you.
Finding a home is about more than the numbers. It often comes down to a gut feeling. Still, this doesn’t preclude potential renters or buyers from being strategic when making decisions based on emotion. In many cases, the savvy buyer or renter who is working with the right agent may be able to align their feelings with the data to discover the best options.
Now let’s dive into the data and get the word from the markets and check the sentiments out there.
Manhattan Sales Market:
There are currently 7,350 homes for sale, up 0.9% from last month. The supply is down 0.7% year-over-year. Monthly contract activity for May had 1,036 contracts signed, down 4.7% from the previous month. Signed Contracts were up 3.4% from last year. Pending Sales are up 5.6% month-over-month and up 25.8% year-over-year.
As we discussed in our last newsletter, with supply basically flat for the year, we are still seeing pretty good demand based on the yearly growth in signed contracts. That said, historically, the sales market tends to slow down over the summer – so we are anticipating further month-over-month declines in contract activity once the June data are printed.
What This Means for Buyers:
Sometimes you find the moment and close on your ideal property in a challenging environment. With markets contending with serious geopolitical instability and fluctuating tariff policy, we are still seeing strength and resilience in the sales data. While the seasonal pattern suggests that we will see a slowdown over the summer, as we mentioned, now may be a great time to lock in a deal. We are predicting an even stronger sales market emerging in September. We will go over rising rents in more detail when we get into the Manhattan rental data, but the takeaway for the sales market is that rising rents are often a leading indicator for increased pricing for home sales.
The passage of the FARE Act shifts the responsibility of paying broker fees in rental transactions from tenants to the party that hired the broker, usually the landlord. We see this leading to a further increase in average rental prices. This could also portend higher sales prices on the horizon. If you are feeling inspired to purchase your ideal home, there may be no time like the present, given the future sales growth price indicators that we are seeing.
Manhattan Rental Market:
The average rental price of $5,379 is up 0.6% from last month and up 4.5% year-over-year. New lease signings are up 19.3% from last month. Listing inventory is up 6.8% month-over-month and 31.2% from last year. With the passage of the FARE Act, we anticipate a compression of listed inventory with an increase in average rents.
What This Means for Renters:
The rental market is getting more competitive and complex, with rents already higher than they were last year. The consumer, landlords, and agents alike will be contending with the new legislation for the foreseeable future. Now could be a good time to lock in a lease before prices rise even more during the busy rental season.
Final Thoughts:
The market has its headwinds, but both the sales and rental data are showing some strength. With the right agent by your side, you can navigate the current landscape and negotiate the best deal. Opportunity is here—and we’re ready to help you seize the moment.
