WHY THE MARKET IS SHIFTING
We are in the midst of a market shift and the opportunistic moment for buyers has arrived.
February brought almost the exact same number of signed contracts that we saw in 2018 while closings saw a drop of about 20%.
Why this signals a market shift:
Price Per Square Foot:
February 2018 was a market on the downslide with an average value of sold properties at $1341.00 per sq. ft.
February 2019 is kicking off to be a market that is bouncing back with this past month’s average at $1546.00 per sq. ft.
This does not reflect rising prices. It reflects more expensive homes beginning to sell.
Last year the majority of what sold were smaller, lower priced properties.
Now we are starting to see luxury properties move again, a welcome sign of recovery.
Sold vs. Contract Signed
February of 2018 brought 780 signed contracts vs. 801 closings.
February of 2019 brought 762 signed contracts vs. 556 closings.
Closings follow signed contracts. More closings in a month vs. signed contracts indicate that sales volume is dropping. The increase in contracts means more deals are happening then in previous months. While it’s difficult to compare continuous months due to seasonal factors, looking annually at the same month shows defining data.
Not many news outlets will report this recovery until there has been 2 to 3 months of solid closed numbers, most likely be in the third quarter of the year. Until then it will be a rare market for buyers where prices will remain low and the demand will be moderate. Our prediction is once the New York Times headlines read “A Real Estate Market surge in NYC”, it’s back to the buyer rat race competing for deals and pushing prices.