It’s time for the NYC monthly sales market update! Here’s a look at some key numbers for December 2023 in Manhattan and Brooklyn.
The Manhattan sales market showed some positive signs during the last month of the year. Although sales were down compared to the previous month (4%), they were up 8% compared to December 2022.
Additionally, the average price per square foot was up 1% both annually and monthly. But this was primarily due to a number of very high end sales, especially around Central Park.
Inventory more or less held steady. Listings were down 2% year over year and down 1% compared to November. So would-be sellers aren’t facing a glut of competition.
Nonetheless, sellers are still facing quite a few headwinds. This was reflected in days on market, which were up 9% versus November. But, more importantly, the negotiability factor stood at 5.1% below asking. This showed that buyers still have considerable bargaining power.
The Brooklyn market continued to stymie buyers and, to some degree, sellers. Contracts signed were up 14% compared to last year – an impressive increase for a difficult market. And active listings decreased significantly, both on an annual (17%) and monthly basis (13%).
But despite these positive metrics, the overall average price per square foot held fairly steady. It was up only 3% compared to the previous year and down 1% compared to November. So despite the very limited supply, price growth is being constrained by buyers’ more limited purchasing power.
Evidence of the continued stalemate was most visible in the negotiability factor. It stood at 0.2% above asking – the 17th month in a row of it being within 1% of the last asking price.
An increase in sales is widely expected for several reasons. First, sellers who decided to hold off on selling during the holidays will probably list their properties to start the new year. Second, lower interest rates may entice some sellers to finally put their places on the market. And finally, higher rents combined with falling interest rates are likely to encourage some buyers to get back into the sales market.
The big question, however, is how much of an increase we’re likely to see during the month of January. That will largely be determined by the direction of interest rates and available inventory. Lower rates + more inventory = greater buyer interest. And more buyer interest will equate to a more active market.
Despite modest inventory, there’s still quite a bit of opportunity for would-be buyers. And that’s especially the case for studio, 1 bedroom and small 2 bedroom buyers, particularly those interested in Manhattan. It’s unusual to go for so long seeing the cost of ownership being lower than renting, so now’s a great time to take advantage.
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