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Summer is finally behind us and Listing season has just started. For the next 5-6 weeks, sellers can enjoy increased buyer activity and buyers will finally have some more inventory to choose from.
August held few surprises, with supply dropping even further, and liquidity – our measure of demand – following the same path. New supply is expected to come in over the next few weeks, and liquidity should recover too. Manhattan inventory, however, has been underwhelming these first couple of weeks of September, and is the lowest in 5 years, putting additional pressure on buyers.
It’s not all slow though: while demand always drops around Labor Day, we are still showing relative strength; Average liquidity has been higher this August than it was the same time last year, and even higher on average than in 2018, 2019, and 2022!
August saw big numbers compared to earlier years when it came to signed contracts. 2024 saw more contracts signed this August than the seasonal average, a result of mortgage rates finally dropping and making homeownership a possibility for buyers. While contract activity is expected to slow down this September, it will pick back up around the end of fall, as upcoming, new inventory converts to signed deals.
With fall being the second-busiest real estate season and mortgage rates expected to keep lowering, sellers should list now and take full advantage of the next six weeks, since demand will fade around mid-November. Sellers, be aggressive in early October and let the market come to you, but also have a price reduction strategy in place, in case the market doesn’t react to their pricing. Buyers, this is your chance to finally enjoy some more inventory, better financing conditions, and a relatively active market.
