The Market Report: April 2023

Swiftly into Spring

In New York City, April usually feels like turning a corner from one season to the next. This year the seasons seem to blend into each other, from a winter that often felt like spring, and now moving into spring with barely a snowflake in the city to prove we made the change. For our real estate market, April and May often feel like sprinting laps until we reach the uncertainty of the summer months, when some would-be buyers hold off their hunt until fall, and some existing buyers back off until summer schedules cool down.

We presume the same will play out with many buyers in the next few months. But we have seen a very resilient and active buyer pool recently, despite the Fed rate increases and market volatility, and the bank collapses this past month. Given low-level inventory year-over-year and a seeming influx of buyers in many sectors, we anticipate a very active next few months, which may very well blend right into this summer.

The current buyer pool has brought with it what feels like a lopsided lack of knowledge to the market. We are encountering many buyers who are under-informed on the lending landscape – hoping to obtain products they likely won’t qualify for and inexperienced lending officers who aren’t guiding them on the proper product for their objectives. We’re having offers come in with lending proposals that are extremely unlikely to perform. Similarly, we are seeing buyers adding to the number of offers being bid on properties but offers that are too aspirational and often futile exercises. They want steals. But the experienced buyers who have been consistently hunting in competitive neighborhoods are prepared and practical on what will constitute a deal.

The number of pending transactions in the city are down over 30% year-over-year, but if the current buyer activity continues, and the knowledge and resiliency of those buyers increases, we expect the pace of an active spring could run into summer this year. The next few months will tell.

If you’re in the new buyer pool, get an edge and discuss your objectives with an experienced agent now while or before first hitting the pavement. Get guidance upfront, so your eyes are fully open to the market, the process and your likeliest best opportunities to meet your goals, rather than just embarking on a house beautiful tour of the city. Likewise, speak with an experienced lender who can educate you on product and practicality of obtaining the mortgage that best suits your situation. Your agent can guide on lending institutions that may be good resources to secure the best product for you and a deal that will get the job done.

--------------