“Spring is when life’s alive in everything.” — Christina Rossetti
“It’s spring again. Everybody knows it’s spring again. To the girls and boys and people above. This is the time to fall in love.” — “Spring Again” by Biz Markie
Springtime in New York City is where I like to be. It is the season of cherry blossoms, magnolias, daffodil blooms, and walks in the park; a time to enjoy outdoor art. It can feel like summer in the sun and winter in the shade. This is the time where the sales and rental markets often run hot. So let’s take a look at how the markets are shaping up and get out there!
Manhattan Sales Market:
Right now, there are 6,281 homes for sale, which is up 12.1% from last month. However, we are basically flat year-over-year, with a 0.4% decrease in listings. Monthly contract activity for February was up 20.8% from the previous month, with 861 contracts signed. While signed contracts were down 3.7% from the prior year, we anticipate a large increase in new inventory and pent-up demand that should yield a busy spring sales season.
The prognosis for mortgage rates is one of relative stasis, with many experts anticipating that rates will stay between 6% and 7% for the next few years. There is a sense that more buyers will begin approaching this market again, with a growing acceptance of this “new normal” of mortgage rates.
Pending sales are up 9.7% month over month and up 15.3% from last year. As we mentioned in our last newsletter, we expect more homes to hit the market this spring, especially between March and June.
What This Means for Buyers:
The spring season will offer increased options and choices, as inventory ramps up. We predict that this increased inventory will be in line with historical trends. If this is the case, demand will also rise, leading to an increase in closed sales prices for the season. While expectations for finding the best deal or price point in this season might need to be tempered a bit, it always helps to have a great agent on your side to help navigate the abundance of choices and negotiate in a competitive market. This may be an ideal time for a buyer looking to find their perfect home, with plenty of new opportunities available in this busy spring sales listing season.
Manhattan Rental Market:
Rents are continuing to rise. The average rental price is $5,368, up 4.6% month over month and up 7.7% year over year. The average rent per square foot is $90.65, up 7.6% year over year. Higher mortgage rates may be keeping some people in the rental market.
What This Means for Renters:
Prices are expected to go up further in May when more people start looking. This means that, while rents are already moving up and are higher than last year, it could be a great time to rent now and lock in a deal before the expected price surge in the next few months.
Final Thoughts:
Whether you’re buying or renting, an experienced agent can guide you through a competitive market and help you find the perfect home among a wide range of options. In the meantime, take the time to enjoy a new neighborhood or commune with nature. It is spring again after all.
