Manhattan median closed sale prices during February declined about ~7% year-over-year, but we expected this since these deals were negotiated in Q4 of 2022, what many consider the bottom of the market. On the ground now, prices for new listings do not seem to reflect further discounts. Median PPSF -- which is a measure of condo, not coop, pricing -- ticked up slightly in February hitting record levels according some data sources. Rather than indicate an upward shift in prices, our best guess to explain this trend is that only the strongest (more luxurious or in better condition) condos entered the market in the second half of the year, with sellers of weaker units sitting tight until the overall market improved. 

In Brooklyn, some have pronounced that the borough is entering a "buyer's market" but this does not reflect what many of our buyers continue to experience. This is because Brooklyn is the proverbial tale of two cities. Some areas of Brooklyn have declined (with overall supply up and lower demand) creating pockets of opportunity for buyers and bringing down overall metrics. However, competition remains fierce in other areas of the borough (i.e. NW Brooklyn, which includes areas like BK Heights, Fort Greene, DUMBO, Park Slope, BOCOCA and Prospect Heights), where demand continues to dramatically out-pace supply.

While it remains to be seen how 2023 will unfold, anecdotally we've recently had good traffic at all our new Manhattan listings, while our Brooklyn buyers have been frustrated by very minimal new inventory. Assuming interest rates remain stable, we are cautiously optimistic for the year but expect transaction levels to remain below historical averages at least through the Spring market unless there is a shift in seller sentiment.