{May, 2023} High End Market Is Moving
May is the month of awakening in nature. At our House in the Woods, we found a fresh bird nest under our deck. We spotted a mommy bear with 3 cubs waddling into the backwoods behind the house. A pair of woodpecker parents took turns feeding their two newborns high up in a tree nearby. In the city, the subway was overflowing with brightly colored graduation robes. Feeling their palpable energy, I was instantly brought back to the days when I first moved to the city after graduating college. What a wonderful place to start one’s journey!
The NYC real estate market continued its slow pace in May. The number of viewings popped in May, thanks to all the visiting parents curious about the city market. But that didn’t translate into more contracts signed. The total numbers of contracts signed and closed were actually on par with those of 2019 and 2018. But a larger percentage of the activities were in the higher price points and in new developments. Buyers in the higher price points are less likely to be affected by the high mortgage rates. New developments are negotiating more than resale sellers, as is often the case in a down market. Another point to note is that this is a very price-sensitive market. Buyers are motivated by prices and prices only. The mantra is only if I can get a good price, there is no urgency to buy now. The NYC market continues to be a buyer’s market. But the luxury end of our market typically leads the broader market. When the market first started to cool down in 2017, it started with the luxury end and then trickled down to every price point. Now perhaps with the luxury segment being active, a recovery in other price points could be on the horizon.
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The NYC real estate market is at an interesting crossroad. On the one hand, we feel a lot of pent-up demand from buyers who have been watching and waiting for rates to go down.