It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for September 2023 in Manhattan and Brooklyn.
Contracts signed declined on both an annual and monthly basis in Manhattan (19% and 28%, respectively). In fact, this was one of the lowest levels of contracts signed since 2019 (excluding 2020). The steep downturn was likely due to a number of factors – high interest rates, seasonality and holidays.
But unlike past sluggish markets, inventory isn’t piling up. Although listings increased by 4% compared to August 2023 (which is typical of seasonality), they were down 3% compared to September 2022. The total number of listings was actually at the lowest level seen since 2017.
Lower inventory was reflected in the negotiability factor, which tightened to 3.8% below asking.
Brooklyn likewise saw a steep decline in contracts signed – 36% year over year and 24% month over month. However, the monthly decline was in line with the kind of seasonality we’ve seen over the last 5 years.
While high interest rates were certainly a leading factor for the decline, unlike Manhattan, the low level of inventory is also dragging down overall sales numbers. Despite a significant uptick month over month (up 26%), active listings were down 11% compared to September 2022. This is quite a bit below what we would expect to see for this time of year.
The lack of inventory tilted things slightly in favor of sellers, with the negotiability factor sitting at 0.3% above ask. However, it’s important to note that 54% of deals in the borough still went for below asking.
“Same old, same old” is likely to be the name of the game for the market in October. The slight increase in inventory and whispers that the federal interest rate may hold steady could encourage more would be buyers into the market. But folks in Manhattan and Brooklyn are actually starting to get a break on rents. So that’s likely to encourage more folks to keep their holding pattern until signs of rates declining emerge.
But there is something to be said about being willing to do what others are not. Interest rates may be high, but prices – especially in Manhattan – have moderated. And they may decline further in certain categories. So if ownership beats out renting for you (check out this post to see), then it may be worth it to take the leap sooner rather than later.
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