We’re just a few weeks away from the official start of New York City’s Spring Market, and we’re already seeing signs of seasonal momentum. Inventory is beginning to rise, contract signings are picking up, and shifts in buyer preferences are becoming more apparent. While the market hasn’t hit full speed yet, this is the ideal time for both buyers and sellers to position themselves for success.
Sellers: Inventory is Rising, But Supply Remains Tight
Manhattan supply is increasing, with 5,809 active listings currently on the market. Last week alone, 370 new properties were added, marking a 4.5% weekly increase. While inventory remains 2.2% lower than last year, we’re on track to surpass 6,000 active listings soon.
Typically, inventory rises before contract activity picks up, but this year, demand is outpacing supply growth. Meaning some buyers are entering the market earlier than expected, making now a potentially opportune time for sellers to list before competition intensifies.
Courtesy of UrbanDigs
Courtesy of UrbanDigs
Buyers: Contract Activity is Picking Up, Competition is Growing
While more homes are coming to market, contract activity is rising even faster. Over the past 30 days, 890 contracts were signed, reflecting a 6% increase from last week. In just the past seven days, 222 deals closed, a 20% week-over-week jump.
This surge in demand could lead to tougher competition than previously expected. While more inventory will hit the market throughout spring, buyers should be prepared for fast-moving deals. Well-priced properties are already attracting strong interest, and waiting too long could mean facing multiple-offer situations.
Courtesy of UrbanDigs
Courtesy of UrbanDigs
The Renovation Premium & Evolving Buyer Preferences
Another key trend this spring is the evolving renovation premium. During the post-pandemic housing boom, fully renovated properties commanded a 30%+ premium, as buyers prioritized turnkey homes. That premium dipped to 17% last fall but has now rebounded to 19%.
This suggests that the new normal for the renovation premium may settle between 15% and 20%, a notable increase from the 10% to 15% range seen a decade ago. At the same time, interest in unrenovated apartments seems to be starting to rise, as some buyers are seeking value in a competitive market where fully updated homes still come at a premium.
For sellers with older properties, pricing strategically is key. Even homes that require updates can attract serious buyers if positioned correctly.
Courtesy of UrbanDigs
How to Maximize Your Success This Spring
For Sellers:
- List ahead of peak inventory – Demand is already strong, meaning now is a great time to stand out before competition increases.
- Price competitively – Buyers are moving quickly, but overpriced listings are still struggling to gain traction.
- Highlight renovations (or price accordingly) – The premium for updated properties is holding steady, but buyers are more open to unrenovated options at the right price.
For Buyers:
- Be ready to act quickly – Demand is already picking up, and the best homes won’t last long.
- Expect competition – More buyers are jumping into the market earlier than usual, meaning desirable properties may see multiple offers.
- Consider all options – Unrenovated properties may offer better value, as the renovation premium remains elevated.
The Spring Market is still a few weeks away, but buyers are already making moves, and sellers are beginning to list their properties in response. However, with demand outpacing supply, the market could become more competitive than expected.
Sellers who list earlier may have an opportunity to take advantage of the strong buyer activity before inventory picks up, while buyers who prepare now and act decisively will have the best chance to secure their ideal home.
If you’re considering buying or selling this spring, now is the time to plan your strategy. Reach out today to discuss your next steps and get ahead of the market!