While closing prices get validated on a 3 or 4 month lag brokers become aware, and inform sellers, on a much more expedited basis. If something comes on the market tomorrow and goes to contract in a week, the next sale in the building gets priced on that, not the last closing.
NB that is predicted on the "if" prices are rapidly rising. So far what I think we have mostly seen is product moving because of seller capitulation. In fact when we are now seeing statements from brokers about "short supply," there really isn't a short supply based on historical norms. But what we do have is a bifurcated supply of sellers who have priced below what they were previously at and sellers who are still aspirational. The first group are selling extremely quickly in this hyperliquid market and the second group by and large aren't. So we do have a shortage of low hanging fruit. Example:
https://streeteasy.com/building/the-twenty-1/4th-floor
From what I understand the strategy used worked well any the unit is supposed to be in contract over $4M. But that was predicated on the "WAS $6.4M, NOW ASKING $3.75M. FULL SERVICE CONDO, 4 BEDROOMS WITH DEEDED PARKING!
BEST AND FINAL BIDS DUE MONDAY, 1/17 BY 5PM."
aspect, not at higher prices.