Hold onto your hats, folks! The Big Apple is gearing up for a spring awakening as its real estate market starts to buzz with activity. In Q1 2023, we saw a 14.5% increase in contract activity, which means buyers and sellers are ready to tango despite higher interest rates, economic uncertainty, and geopolitical challenges. So let's dive into the world of New York real estate and explore the trends that are shaping the market in Q1 2023.
The Market Grows Up: Sustainability and Balance
Q1 2023 had 2,262 apartment sales, totaling a whopping $4.49 billion. Remember the crazy buying spree of 2021? Well, this quarter's transaction volume looks more like the historical average, signaling a more sustainable and balanced market. With 2,235 condos and co-ops worth $4.46 billion going into contract this quarter, we've seen signings pick up the pace since February. And guess what? It's pointing to a fabulous spring season!
Submarket Swings and the Seasonal Dance
Even the hardest-hit submarkets like the Financial District and Midtown West are gearing up for a comeback as the spring season breathes new life into their sales. The Upper East Side has been strutting its stuff, with a 20.6% dip in sales but a fabulous 21.9% increase in average price year-over-year. And the ultra-luxury sector? Talk about red carpet treatment – sales in the $20M and above range have skyrocketed by 200% year-over-year and 36.4% quarter-over-quarter.
The Ever-Present Inventory Challenge
New York City's real estate market, just like the rest of the country, is dealing with an inventory shortage. But hey, there's good news! Homes that are accurately priced and turnkey-ready are still trading because, let's face it, life doesn't wait for perfect market conditions. All the signs show that the market will keep evolving, with consumers more willing to make a move. And while external factors may keep things interesting, Manhattan real estate remains a prized asset class.
Let's Talk Numbers: Q1 2023 Market Stats
Ready for a whirlwind tour of New York real estate market stats? Here are some of the highlights from Q1 2023:
- Average Sales Price: $1,985,985
- Average Condo Price: $2,978,715
- Average Price Per Square Foot: $1,483
- Average Discount: 7%
- Median Sales Price: $1,085,000
- Average Co-op Price: $1,218,875
- Average Days on the Market: 160
- 32% of properties took more than 180 days to enter contract
A Look Back at Q1 2022
Let's reminisce about Q1 2022, shall we? There were 35.0% fewer properties closed this year, following a somewhat sluggish Q4 2022. Condos took the biggest hit with a 39.6% decline, but their prices made a 10.9% comeback to nearly $3M on average. And while Q1 2023 saw 32.1% fewer contracts signed than the same period last year, there was still a 14.5% increase compared to last quarter. Upper Manhattan and Downtown tried their best, with declines of 26.3% and 26.5%, respectively. The $5M-10M price bracket even managed to score 39.8% more contracts signed than last quarter. Quarter -over-quarter co-op prices climbed 9.1% on average and 4.3% in median price. Meanwhile, the median price of a condo took a 9.6% dip year-over-year and went down quarter-over-quarter as well.
Why a Savvy Agent Makes All the Difference
In these ever-changing market conditions, having a knowledgeable real estate agent by your side is like having a secret weapon. With their experience and access to the latest technology platforms, they'll help you navigate the twists and turns of the New York real estate market like a pro.
A Blooming Outlook for the Spring Season
With the quarter-over-quarter contract activity going up, it's safe to say that the New York real estate market is blossoming this spring. As buyers and sellers embrace current market conditions and external factors, the market is poised to grow and maintain its balance.
So there you have it! New York's real estate market is waking up from its slumber and blooming with renewed life this spring. With a more balanced and sustainable market emerging, buyers and sellers can look forward to a brighter future in the city that never sleeps. As the market continues to evolve and adapt, working with a knowledgeable agent and using the latest technology platforms will make your real estate journey feel like a walk in Central Park. Happy spring, and happy house hunting!
CNE Certified Negotiation Expert
Licensed Associate Real Estate Broker