It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for August 2023 in Manhattan and Brooklyn.
As expected, signed contracts were down in Manhattan compared to August 2022. However, they were up on a monthly basis (by 7%), and the annual decline was the second lowest since April 2022.
Other metrics in the borough were a bit mixed. Days on market were up significantly year over year and flat month over month. But listing inventory declined year over year and also remained flat month over month. This could be a sign that some lingering listings finally found buyers.
The average price per square foot saw a big gain both annually (12%) and monthly (10%) thanks to a full floor sale at 432 Park Ave which was more than $11,000 per square foot. Without that sale, however, the average price per square foot saw a much more modest 5% increase.
But the market still seems to favor buyers, with the negotiability factor sitting at 4.7% below asking.
Brooklyn saw more marked declines in signed contracts compared to Manhattan. They were down 29% versus August 2022 and 17% compared to July. The $2 million to $3 million range was hit the hardest.
The borough saw a puzzling trend during the month of August. Inventory dropped precipitously compared to last year (down 27%). And it was also down compared to July 2023 (7%).
But days on market didn’t reflect the tight inventory. That figure was up 30% year over year and 22% month over month. This could be a continuation of the trend we saw in the previous two months – older listings pulling up the average. But the magnitude of the increase was still surprising.
Buyers have developed a little more of an edge compared to sellers, with the negotiability factor sitting at 1.3% below asking. It’s worth noting that more than 50% of listings actually sold below asking. And that hasn’t been the case since January and April, respectively, of this year.
The market is likely to continue to be in its quagmire state (especially in Brooklyn) for at least the next couple of months. Fall is likely to see more listings come onto the market, as is typical of seasonality. But how much inventory remains to be seen. With interest rates continuing to be high and not much in the way of housing options to switch to, many would-be sellers are likely to stay put.
There are some who think that the recent change to short term rental laws may cause some investors to list their properties for sale. But it’s equally likely that many will simply shift to long term rentals (which would provide some much needed relief for renters).
We may see some modest overall market movement since the Fed has decided to hold interest rates steady this month. But likely not quite enough to materially change the situation.
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