If you are looking for a single headline, you won’t find one. We had a very strong start to the year on many levels. In general, sales volume is up and prices remain steady, which demonstrates the market’s resilience especially given the news and noise surrounding global events, economic worries, and local politics.

As I have written in the past, demand remains strong, especially for move-in ready properties that are priced right (if you fall into that category, you might even experience a bidding war on your home!). Inventory continues to be tight, which supports price levels, particularly in the luxury sector (over $4M).

Sales volume increased 4% year over year, marking the strongest first quarter for closing volume in a decade. There was a disparity between the higher end and the lower end when calculating this average (not uncommon), with lower-end sales volume declining and higher-end sales increasing rather dramatically (10%). Contracts signed in the first quarter dropped 11% year over year, which could indicate some headwinds for closed sales volume in the second quarter. Average days on market dropped nearly 10% to 110 days, driven by more realistic pricing on the part of many sellers.

Luxury sales surged meaningfully, with February alone seeing over $1.38 billion in contracts signed on properties priced over $4 million, including a notable number of deals north of $20 million. The strength at the high end of the market has now entered its second year and has been driven by Wall Street bonuses, stock market performance, and a continued preference among affluent buyers for hard assets in global cities like New York.

When it comes to prices, it is, as usual, a tale of two (or more) cities. Median sale prices in Manhattan have risen overall year over year, driven largely by the strength of the condo and new development markets. Prices are softer in the co-op market, especially in certain segments. The luxury market is commanding premiums in many instances, and the entry-level market (sub-$1M) is more negotiable than it has been in quite some time.

Inventory, or the lack thereof, continues to be the central theme. It remains historically tight, with active listings at their lowest level in almost 10 years. So, while demand is inconsistent across the various market segments, the lack of inventory is preventing any truly meaningful declines in value.

What does this mean for you? In a nutshell, if you are selling a well-priced, well-presented property in excellent condition, the market is going to work for you. If you are buying and open to co-ops and/or renovations, this is one of the most opportune times I have seen in years. If you are waiting for the market to “crash,” you are likely going to be waiting a long time. We are living in a supply-constrained, demand-driven, globally influenced market that is rewarding quality.

One of the things I love about Manhattan real estate is that it refuses to behave like a “normal” market, nor does it adhere to the goings-on in other markets across the country. It makes for a fascinating and challenging place to do business.

Understanding the nuances is what I do best (because I love it). It is entirely necessary in today’s market, and this is where strategy matters most.

My team and I are thrilled to have experienced our best quarter ever, with over $95,000,000 in closed and pending sales through the first quarter. I am truly grateful to all our clients, colleagues, and friends who put their trust in us. We will continue to deliver the strategy and support you deserve.

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