I
n Manhattan's frenzied real estate market, a peculiar phenomenon is unfolding: listings that have languished for months or even years are suddenly sparking bidding wars. It's as if the city's buyers, frustrated by the dearth of available apartments and rising rents, are circling back to previously overlooked gems.

    For Lillian Norcross, a studio apartment in Gramercy Park was the perfect fit – until it wasn't. The 300-day-old listing had been on her radar since December, but she hesitated, imagining what could be done with the outdated kitchen and electrical issues. When an inspection revealed the need for upgrades, the seller agreed to take care of them. But just as Norcross thought she'd secured the apartment at a slightly lower price, a competing offer emerged – full asking price, no strings attached.

    "I was shocked," Norcross recalls. "Especially after we'd put in an offer and it was accepted." Her real estate agent, Laura Cook, wasn't surprised. In fact, several of her older listings were experiencing similar bidding wars. A Sutton Place one-bedroom with a terrace, for instance, went from having no offers to multiple bids in January, ultimately selling over the asking price.

    This trend is not unique to Cook's listings or even Manhattan. Brokers across the city report seeing their previously stagnant listings suddenly take off, often with multiple competing offers and sales above the asking price. "I've experienced it four or five times in the last few months," says Leslie Hirsch of Christie's International Real Estate Group. "Listings where we've hit 100-plus days on the market and we're trying to figure out strategies, tours, price cuts – and then, out of the blue, multiple bids."

    So what's behind this sudden surge? Experts point to the COVID-era housing market's aftermath: years of low inventory and high interest rates have left buyers with pent-up demand and a growing acceptance that things won't magically improve. As a result, they're circling back to previously overlooked listings, often finding themselves in bidding wars.

    "It's not just about the price; it's about the value," says John Walkup, co-founder of UrbanDigs. "Buyers are looking for nuggets of value in an otherwise scarce market." And with no flood of great spring inventory on the horizon, buyers are getting creative – and competitive.

    Brokers are now doing whatever they can to get a jump on good listings, often fielding multiple offers from determined buyers who need to act quickly. "Lately, I've been inundated with 'in search of emails' from other brokers," says Tate Kelly of Coldwell Banker Warburg. He recently handled a three-way bidding war on an Upper West Side prewar studio that had been on the market for 200 days.

    But there's more to these bidding wars than meets the eye. Brokers suggest that sellers' brokers may be playing a role, shopping around clients' offers and engineering a competitive environment. And buyers themselves are divided into two camps: those who will shop around until they find their perfect match, and those who need to buy now – no matter what.

    As rents continue to rise, more apartment hunters are joining the latter camp. A 33-year-old private-equity investor, for instance, was motivated to buy after her landlord announced a 15 percent rent increase. She bid on multiple listings, ultimately securing a contract on a one-bedroom at 72nd and First Avenue.

    For Norcross, however, the experience was frustrating – and humbling. After losing out on the Gramercy studio, she reframed her priorities and found another apartment in Lenox Hill that met her needs. "It took a while to get it off that apartment," she says. "But I'm glad I did."