The spring season is coming fast, and if you’re thinking about selling your New York City home, you need to be prepared. With Manhattan and Brooklyn supply notching big dips over the holiday season and demand starting to pick back up, there is a fresh set of challenges to consider, namely higher-for-longer mortgage rates, which are creating cautious, price-sensitive buyers. The market is shifting, buyers are back, but they’re just as picky as ever. Here’s what you should know to stay ahead of the competition and sell successfully.
1. You Are Not Alone
Competition is coming. Right now, inventory is near its seasonal lows, but that’s about to change. Spring is the busiest season for New York City real estate, and as March rolls around, so will the usual flood of new listings. For instance, last year, Manhattan saw nearly 6,400 listings come to the market between January and April. With supply currently hovering around 5,500, the coming increase will be significant and likely be felt across all neighborhoods and price points. In short, a wave of competition is on the way.
2. Buyers Are Back (But They’re Still Picky)
The good news is that the recovery momentum seen during the fall season seems to be continuing, with deal volume this January trending slightly higher versus last year. The bad news is that the market has essentially recovered enough to get back to normal. In other words, volume is only back to typical seasonal levels, and with mortgage rates still hovering around 7%, buyers are in no rush. Unlike during peak-buying frenzy times like 2021-to-2022, buyers need a reason to buy, not an excuse. They’re looking for value and are not afraid to walk away and patiently wait for the right property on the sidelines until it comes along.
3. Selling Isn’t Getting Easier
Even with buyers returning to the market, the listing environment continues to be difficult. The UrbanDigs Listing Climate, which monitors the ratio of successful to unsuccessful listings, fell to 0.99 in December. This indicates that the number of listings taken off the market (unsuccessful listings) exceeded the number of signed deals (successful listings) as the market shifted back into a more challenging listing climate. While seasonality is the main culprit for the deterioration in conditions, the hard truth is that if you’re not priced right, your listing could sit and linger.
4. It’s The Price
We’ve said it before, and we’ll say it again: if your home isn’t selling, it comes down to one of three things: product, market, or price. Here’s a breakdown:
- Product problem – needs renovation, no light, no views, etc
- Market problem – supply glut, recession, high mortgage rates, etc
- Price problem – asking price beyond the “inside market”
Spoiler alert: it’s almost always the price. With more competition around the corner, buyers won’t even bother with overpriced listings. With buyers as price-conscious and data-savvy as ever, the key is understanding the value your home presents in the eyes of buyers. For instance, if your neighbor sold for x dollar amount in gut-renovated condition and yours needs a touch-up, do you really think you can get more? Buyers know the answer: “No.” So it’s time to get real about what your place is worth and get comfortable with months on the market as you chase the market down. Realistic pricing from the start attracts serious buyers immediately and minimizes time on the market.
5. Embrace The Quirks
The best way to get the right price is to be honest and transparent. Buyers have probably seen dozens of homes like yours, which makes them savvy enough to spot a cover-up from a mile away. Highlight your home’s strengths and embrace the quirks. For example, 5th floor walk-up? Free cardio! Outdated appliances? Retro-chic! By managing buyer expectations before the unit is seen, sellers can position their home as an opportunity rather than a compromise so buyers can focus on the positives. Honesty builds trust, and trust sells.
The Bottom Line
If you know what to expect and plan accordingly, spring is a great time to be in the market. Sellers who get ahead of the competition, price their properties competitively, and adjust expectations to the realities of today’s buyers will stand the best chance of closing successfully in a reasonable amount of time. Get real and get ready to compete because the buyers are coming, and so is your competition.
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