It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for January 2023 in Manhattan and Brooklyn.
January’s numbers make it much more apparent that the market in Manhattan has “cooled” in terms of sales. Contracts signed were down month over month and year over year (10% and 33% respectively).
Days on market also inched upwards again, and inventory was up by 9% compared to January 2022.
Overall prices were up modestly, but that was primarily due to robust new development sales. The average price for co-ops, meanwhile, was down 4% on an annual basis.
Additionally, the negotiability factor ticked upwards to 5.4% below asking, indicating that buyers have some increased leverage.
Brooklyn again mirrored its East River counterpart in terms of sales volume, with contracts also down on an annual and monthly basis (44% and 20%, respectively).
And prices finally began to reflect a shifting market, with the average price per square foot down by 13% compared to January 2022. The shift may have been due in part to buyers adjusting their budgets in response to interest rates.
Inventory, however, remained stubbornly low and continued to decline. So this means that buyers aren’t truly in the driver’s seat across the market. This was reflected in the negotiability factor which stood at 1.7% below asking.
There’s anecdotal evidence that the market may be reawakening. Better news about interest rates plus lower prices (especially compared to rents) are luring some buyers back into the market. But both sellers and buyers should temper their expectations.
There’s certainly a lot of opportunities out there for buyers, especially those on the hunt for studios and 1 bedrooms. But buyers should still be mindful of the fact that inventory is lower than expected in both Manhattan and Brooklyn (the latter, especially). So that means you won’t necessarily have your pick of things, and competition will likely still be intense for desirable listings.
Sellers should be aware that market conditions continue to be soft, and the situation with interest rates remains in flux. So it’s best to price prudently and not try to “test” the market.
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