Market Update - April 2024

Happy Friday!

Good morning and welcome to my monthly newsletter covering Brooklyn and Manhattan real estate, news and local events. As we enter the heart of Spring, the market is bustling! Just about every property I’ve visited recently has seen competition with multiple offers. Here's a quick rundown to help you prepare:

Listings have been moving quickly, but not every property and neighborhood sees the same level of demand. A renovated, well priced, 2+ bedroom, in a prime location that checks a lot of boxes can expect to see strong interest; an overpriced one-bedroom, facing a noisy street with limited light and an awkward floor plan, not so much;
Marketing matters even in a seller's market. A well staged and presented home that's priced right and strategically positioned tends to attract much more attention than one that's not. If it looks good to you, it likely looks good to everyone else;
It's all in the pricing. It's not uncommon to see properties listed below (and sometimes well below) fair value to stimulate demand and induce competition. It tends to work, but can also backfire. It also makes overpriced homes look like dinosaurs. Buyers aren't stupid and overpriced homes often languish on the market;
Lowball listing prices can sometimes discourage buyers from bidding aggressively based on the misperception that the listing price is fair value. It's a psychological barrier that some buyers find difficult to overcome;
High mortgage rates continue to weigh on many buyers. That being said, there appears to be plenty of demand at current rates;
High rates continue to constrain housing supply as upsizing sellers with low rate mortgages are less likely sell and buy a larger home at a higher rate;
While supply has picked up from earlier in the year, it's still lower than in prior years. As a result, excess demand continues to put upward pressure on prices;
Open houses have been busy. Many properties see multiple offers during the week following their first open house. If you like a place, it's better to catch it early before it's gone;
Online listings are frequently stale. Properties that appear to be “Active” on sites like Streeteasy, Zillow, etc. often have accepted offers and are no longer available;
There are plenty of cash buyers in this market. Those thinking "all cash" means negotiating leverage may end up on the losing end in a bidding war;
Buyers unrepresented by an agent are often ill-equipped to compete. Among other things, market proficiency, valuation expertise, process knowledge, situational awareness, negotiating ability and industry relationships matter when making offers;
Slow, unprepared, and indecisive is not usually a winning formula in markets like these;
News headlines can often be generic and decoupled from what’s happening at the neighborhood level. You'll likely get more relevant information from a local market expert.

That's all for now. Best of luck out there!

Please enjoy this month's update. I hope you find it to be a handy guide for useful market information, articles and events. As always, please feel free to reach out for assistance or advice. I'm always happy to help.

All the best,
Steve