It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for April 2023 in Manhattan and Brooklyn.
Banking failures, higher interest rates and spring holidays took their toll on sales in Manhattan during the month of April. Signed contracts were down 37% compared to 2022 and down 18% compared to the previous month. The latter was surprising, given that we typically see an average uptick of 6% in sales activity between March and April.
The lower level of activity was reflected in both sales prices and inventory. The average price per square foot was down both year over year and month over month. And inventory was up a surprising 29% compared to March.
For buyers still in the market, this translated into good news for negotiating power. The negotiability factor stood at 3.8% below asking.
Brooklyn saw sales activity decline in a similar fashion to its East River counterpart. Signed contracts were down 15% compared to March and 34% compared to April 2022.
The average price per square foot in the borough also saw yearly and monthly declines as well. But these declines were primarily driven by price point, with more than half of sales coming in below the $1 million mark.
More than 50% of sales in the borough occurred under asking price. This is only the third time this has happened in Brooklyn since February 2021. But 21% managed to go over asking, especially in higher priced neighborhoods. This is why the negotiability factor stood at 0.3% above asking price.
Manhattan is becoming more clearly a buyer’s market, thanks to the uptick in inventory.
But the same can’t really be said for Brooklyn. Despite a modest monthly uptick, inventory in the borough remains constrained. So prices aren’t moving too much, especially in more expensive areas.
However, the buyer pool hasn’t really grown as more folks continue to stay on the sidelines. So sellers don’t have a huge advantage, either.
It’s a “balanced” market where neither group is particularly thrilled with the circumstances.
There is some potential good news on the horizon, however. The Fed has signaled that they may further moderate or even pause interest rate hikes. If that happens, then it could result in more stability in mortgage interest rates, which may result in more folks getting into the market.
But sellers remain the big question mark. Absent the usual incentives to make them move – low interest rates, high asking prices, solid inventory – many sellers are choosing to stay put. So until those folks get going, the market is likely to continue to stagnate as we come to the end of spring.
As I mentioned earlier, it’s a buyer’s market in Manhattan in many segments. So if you’re hoping to get a place and can handle the higher interest rates, now’s a great time to look.
For Brooklyn folks, you can still get good value in this market, especially if you’re interested in a studio or 1 bedroom apartment. And if you’re looking for something bigger, being open to a larger swath of neighborhoods will certainly help.
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