It's Been A Surprising Spring Season

There was a lot of excitement about this Spring Real Estate season. The Presidential election was behind us, even there was still a NYC mayor to elect later this year. Mortgage rates in some ways also promised to go down a bit. And the economy looked like it could start to stabilize and grow. 

Then things got very distracting in April. Tariffs, bluster, threats, and noise. Some buyers stepped to the sideline. Some sellers got concerned. And real estate agents watched it all. Surely, people still need to move forward in their lives, right? Turns out that even with everything going on, demand is not only keeping pace, but increasing. In collaboration with amazing 3rd party real estate data portal Urban Digs, we have created some charts for you to look at. Look at this chart about pending contracts: 

As of the writing of this post, pending sales are up more than 26% year over year, despite all of the "bad news." You can see the numbers over the last two years, all of which took place in a higher rate environment.  

And take a look at this chart on market demand: 

You can see that demand fits squarely in line with 2023 and 2024, if not a little bit higher as well. The good news continues...

The Most Interesting Chart

Under $2 million, it is still easier for sellers to sell year over year, even if things have gotten a little cooler from April to May. However, anything priced over $2 million has been much, much stronger. We are highly encouraged by this trend. It means that the market is getting easier in many ways for sellers.

But What About Pricing? 

Supply for the season has essentially peaked, and it's essentially in line with the last 2 years. It doesn't give a good sense of what's going on with pricing. But this chart does, at least for luxury properties.

Rising Luxury Prices

The upshot: Prices are rising. Luxury sellers may want to rejoice, and start listing their properties. See this chart of the top 10% of all closed sales. 

While coops keep pace with their 2023 and 2024 numbers, condo numbers are only getting stronger. Inventory has maxed out for the season. And prices are going up. Encouraging. New development properties are pushing this trend, so there is a lot to unpack. But the bigger point is that signs are largely pointing up.

Let's look at this chart on the last 3 years of median prices. 

Our Big Takeaways

Our recommendation to buyers: Jump in now. That's what the smart money is doing. Get comfortable and educated. Prices have hovered right around where they've been, and any properties on the market are likely to be more flexible in price, as sellers are ready to transact. But price appreciation cannot be far behind, when demand has gone up, price per square foot has risen in the luxury segment. And all of this despite higher mortgage rates. 

Our recommendation to sellers: If you're on the market, be encouraged. There are buyers out there. If you want to sell, get your apartment ready. Don't worry that you've missed the Spring market, there are a lot of buyers just waiting for more inventory, to be sure they have the deal they want. It's a time when inventory is not insanely high, and when there is more activity than ever.

Continued thanks to the guys at Urban Digs for their excellent data collection and charts. If you want to get more specific about your search, or the property you want to sell, be in touch! - Everyone at Magnetic