NYC Real Estate Market Update Q4 2022 – Manhattan & Brooklyn
It’s time to take a look at the NYC real estate market update for Q4 2022.
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The shift in the market was much more evident during the fourth quarter.
In Manhattan, closed sales were down 27% compared to the previous quarter. And signed contracts were down 13%, one of the slowest quarters since 2008.
Declines in prices followed. The median price stood at $1,107,000 – down 4% compared to Q3 2022 and down 8% year over year. This was likely due to inventory not changing significantly, which was up 4% compared to last year.
But time on the market was another story. Days on market registered a 22% increase compared to Q3 2022, the highest increase seen in over eighteen years.
Brooklyn also saw sharp declines in closed sales and signed contracts, with both notching annual quarterly declines of 28% and 13%, respectively.
The median price in the borough also took a hit, down to $760,000. This was a 5% decline both year over year and quarter over quarter. But this may have been a result of buyers shifting to more affordable units to compensate for interest rate increases.
The borough saw some interesting mixed signals compared to Manhattan. Time on market was up by 40% compared to Q3 2022. But that was coming off a seven year low.
And inventory actually slid downwards both year over year (9%) and quarter over quarter (16%). This might help explain why the average price per square foot enjoyed some modest increases on both an annual and quarterly basis.
For those who can manage the higher interest rates, it’s clear that a window of opportunity is open for Manhattan. But the opportunities are likely to be uneven and buyers shouldn’t expect deep discounts. I’d advise against throwing out lowball offers unless you can justify them.
That being said, sellers in Manhattan need to be prudent with pricing. Overpricing and trying to “wait and see” are not strategies to deploy in this kind of market. Sellers should price the property right to begin with in order to avoid deep cuts later.
For those in Brooklyn, the situation is a bit different. Higher interest rates are still sidelining a lot of would be buyers. But inventory is simply not cooperating to give buyers a true advantage.
There’s likely going to be more room for negotiation, as sellers can’t fully call the shots in this market. But buyers can’t overplay their hand.
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