It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for October 2023 in Manhattan and Brooklyn.
The market perked up quite a bit during the month of October in Manhattan. Sales were up 5% year over year and 35% month over month. And days on market finally ticked downward on both an annual and monthly basis.
But other statistics indicate that it’s still a buyer’s market. The average price per square foot was down 6% compared to October 2022 and down 5% compared to September 2023.
And the negotiability factor rose compared to the previous month, to 5% off the last asking price. Negotiability was more pronounced in condos (5.6% below asking) compared to co-ops (3.9% below asking).
In Brooklyn, signed contracts were up significantly compared to September (41%). But activity was below what we saw for October 2022 (down 6%). Buyers saw a little bit of relief with inventory (up 8% month over month), but it was still below what was seen last year this time.
Despite the low inventory level, it’s not quite a seller’s market. The average price per square foot was down both on an annual (8%) and monthly basis (9%). This was largely due to more sales occurring in South Brooklyn, which has a lower price per square foot compared to the rest of the borough.
And the negotiability factor was actually at zero this month. In fact, this figure has stayed within 1% of the last asking price for 12 of the last 15 months. This lends further support to the idea that neither sellers nor buyers have a clear advantage in the current market for the borough.
November might bring similar levels of activity as October, possibly a bit more. News about mortgage interest rates starting to drop may encourage more buyers to take a look at what’s out there. And even though NYC rents may finally be starting to cool off with the cooler temperatures, they’re still at record highs. So for some prospective buyers, owning a home might make more sense than renting, especially if interest rates come down further. And that might be more likely to happen since the market is more optimistic that the Federal Reserve may finally be done with interest rate hikes.
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