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Real estate professionals in New York City are constantly asked, “How’s the market?” It’s a seemingly simple question, but the answer isn’t one-size-fits-all.
Unlike many other regions, New York City is a city of micro-markets, where trends vary by borough and neighborhood, building type and price point. Additionally, NYC’s market structure is unique due to the prevalence of co-ops, condos and strict board approvals, significantly impacting sales dynamics.
6 tips for answering
Here are a few ways to respond to this question effectively in New York City. Use the tips that apply in your market to inform your response the next time you get asked the big question.
1. Always get specific
NYC is a collection of unique submarkets. What’s happening on the Upper East Side may not reflect trends in Brooklyn or Tribeca. Instead of offering a broad answer, tailor your response to a specific neighborhood or property type.
For instance, according to data from real estate analytics firm UrbanDigs, Park Slope’s median sales price was about $2 million in January, while the Upper West Side’s was a little under $1.2 million — the more specific your answer, the more valuable your insight.
If someone looks at new developments in Hudson Yards, their market will be very different from someone eyeing a pre-war co-op on Park Avenue. Co-op sales often move more slowly due to board approval requirements, while condos tend to close faster with fewer buyer restrictions.
2. Know your audience
Consider who’s asking. A buyer, seller or investor may have different interests. For a seller in Soho, talk about how limited inventory and high demand keep prices competitive. For an investor looking at Williamsburg, highlight rental yield and new developments.
If you’re speaking to a first-time buyer in Astoria, they might be more concerned with mortgage rates and affordability. Additionally, if a buyer is looking at co-ops, they should be prepared for financial scrutiny from the board, which may require liquid assets, debt-to-income ratio limits and interviews before approval.
3. Use data, not feelings
It’s easy to say the market is “hot” or “cooling down,” but backing it up with real numbers adds credibility. Reference median sales prices, inventory shifts or mortgage rate trends to paint a clearer picture.
For instance, hypothetically assuming townhouse sales in Harlem were to have increased by 15 percent, but luxury condo inventory in Midtown doubled, that tells a more nuanced story than a blanket statement. Co-ops, in particular, can be trickier to assess, as they don’t always experience the same demand surges as condos due to stricter financial requirements and buyer restrictions.
4. Compare trends over time
Real estate is cyclical, and short-term fluctuations can be misleading. Instead of focusing only on what’s happening this month, provide context.
For example, if condo sales on the Upper East Side were down 10 percent from last year but still 20 percent higher than pre-pandemic levels, that would be a more insightful takeaway. Likewise, if the rental market in the West Village saw a spike post-COVID but is now stabilizing, that would be an essential trend to highlight.
Co-op boards also tend to slow down transactions during uncertain economic times, making it crucial to analyze how different property types perform across market cycles.
5. Co-ops vs. condos: Know the key differences
One of the most significant distinctions in NYC real estate is between co-ops and condos. Co-ops make up roughly 60 percent of NYC’s apartment inventory, according to UrbanDigs, and they have strict rules regarding ownership.
Buyers must provide extensive financial disclosures, sometimes covering two years of tax returns and liquid asset minimums. The board can also reject buyers without giving a reason. Conversely, condos are more flexible — buyers can rent them out, sell with fewer restrictions and typically close deals faster.
Understanding this distinction is key when discussing the market, as co-op buyers and sellers will experience different trends than those dealing with condos.
6. Acknowledge market sentiment
Although numbers tell part of the story, consumer confidence plays a major role in decision-making. Interest rates, stock market performance and global events can impact buyer and seller psychology.
If Wall Street bonuses were down, luxury sales on Fifth Avenue would likely slow, but Brooklyn brownstones could still be in high demand.
The co-op market is susceptible to economic conditions — buyers need stronger financials, and sellers may find it harder to secure board approvals when market sentiment weakens. Conversely, condos may attract more international and investor buyers who are less impacted by local economic fluctuations.
The best answer is a tailored one
Next time you’re asked, “How’s the market?” you’ll be ready with an informative and engaging response without sounding generic. By tailoring your answer to the person asking, you create a meaningful conversation rather than delivering a canned reply. And in a business built on relationships, that connection can make all the difference.
Kevelyn Guzman serves as regional vice president at Coldwell Banker Warburg. Connect with her on Instagram and Linkedin.
