More Buyers, Fewer Bidding Wars

Rates moved higher in May, but so did stock prices. What we saw on the ground was telling: more buyers were out looking, but very few were truly chasing.

We recently sold a property that had unsuccessfully tried to sell multiple times over the past few years. That transaction perfectly captured today’s market. We priced it slightly below market value, and many fellow brokers assumed it would spark a bidding war. Instead, we had a healthy—but not overwhelming—number of showings. The apartment ultimately sold slightly below asking price to the third accepted offer. We had already sent out two contracts before that, but both buyers backed out during the contract stage.

Still, something important is shifting. After such a prolonged downturn, more buyers are beginning to believe this may actually be a good time to buy. Sky-high rents and the return of five-day office mandates are pushing many people back toward homeownership.

At the same time, buyers remain extremely fragile. Any sign of uncertainty—economic, political, or financial—and they retreat quickly.

Compared to last year, prices are essentially flat. But underneath the surface, the submarkets are behaving very differently. New construction and resale co-ops recorded lower sales volume year-over-year, while luxury properties and resale condos saw stronger activity. Normally, all sectors move in the same direction. This year, however, the market is transitioning, and the differences are showing up not just in magnitude, but in direction.

The luxury market has held up particularly well because affluent buyers are less constrained by mortgage rates and are taking advantage of softer pricing. Condos continue to outperform co-ops due to their flexibility and stronger long-term appreciation potential. Meanwhile, new development projects have actually performed well—but transaction volume is lower simply because there is less supply available.

Personal Update

We’re in Washington, D.C. as I write this note. Yesterday we visited the International Spy Museum, which was far more fun than I expected! Afterwards, we rode electric scooters around the National Mall, which the kids voted the highlight of the weekend.

We also read the Gettysburg Address together. Kelly said she hopes that one day she can write words like that.  Yes, let's go!