Pending and Closed Sales
In August 2023, pending sales in New York State saw a notable decline of 11.4 percent, amounting to 10,826. These pending sales are a forward-looking indicator, providing insights into potential future home sales based on contract signings. Correspondingly, closed sales also experienced a significant drop, decreasing by 18.8 percent to reach 11,310.
Available Homes for Sale
The number of homes available for sale witnessed a substantial decrease, plummeting by 26.9 percent to a total of 27,686 units. This decline in available homes further accentuates the competitive nature of the housing market in New York State.
Median and Average Sales Prices
The median sales price in August 2023 surged by 4.8 percent, reaching $411,500. Concurrently, the average sales price also experienced an uptick, rising by 2.6 percent to $536,024. These price increments indicate a persistent demand for housing, exerting upward pressure on prices.
Selling Trends
Sellers in New York State received, on average, 102.9% of their original list price at the time of sale. This figure represents a year-over-year gain of 0.2 percent, showcasing the competitive nature of the market where properties are often being sold at or above their listed prices.
Days on the Market and Inventory
Days on the market, a key indicator of market efficiency, increased by 10.3 percent to 43 days in August 2023. Concurrently, the months' supply of inventory saw a decrease of 9.1 percent, reaching 3.0 months. This indicates a faster pace of sales, emphasizing the demand outweighing the available supply.
This comprehensive analysis of the New York housing market for August 2023 offers crucial insights into the ongoing trends and dynamics. It underlines the competitive nature of the market, with prices on the rise and available inventory dwindling, urging buyers and sellers to carefully navigate this dynamic real estate landscape.
NYC Real Estate Market Trends: Is it a Seller's Market?
New York City, often referred to simply as New York, is a vibrant metropolis that captures the imagination of millions worldwide. Its iconic skyline, diverse neighborhoods, and cultural landmarks make it one of the most sought-after places to live, work, and invest in.
As we delve into the real estate market of New York City for August 2023, a critical question emerges: is it a seller's market? To answer this, let's dissect the latest housing statistics and trends to gauge the dynamics at play in the city that never sleeps. The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.
Housing Prices in New York, NY
In August 2023, the median listing home price in New York, NY remained steady at $795,000 year-over-year. The median listing home price per square foot stood at $774, while the median home sold price was $715,000.
Sale-to-List Price Ratio
The sale-to-list price ratio, a key indicator of market competitiveness, was 97.3% in August 2023. On average, homes in New York, NY were sold for 2.7% below their asking prices during this period.
Buyer's Market Dynamics
Despite the high prices, the New York, NY housing market was categorized as a buyer's market in August 2023. This designation implies that the supply of homes outweighed the demand, providing buyers with more options and potentially room for negotiation.
Days on Market
The median days on market for homes in New York, NY was 86 days. This indicates that, on average, homes sold after spending 86 days on the market. The trend for median days on market has been on a slight incline since the previous month, and also showed a minor increase compared to the same period last year.
Neighborhood Variances
New York City comprises 235 neighborhoods, each presenting unique real estate dynamics. The neighborhood of Tribeca stood out as the most expensive, boasting a median listing home price of $5 million. On the other end of the spectrum, Riverdale emerged as the most affordable neighborhood, with a median listing home price of $349,000.
Considering these statistics, it's evident that the New York City real estate market is currently favoring buyers. However, the high sale-to-list price ratio indicates that sellers still have strong bargaining power. As always, market dynamics can shift, so staying updated with the latest trends and consulting a real estate professional is essential for making informed decisions in this bustling urban market.
NYC Housing Market Report for July 2023
In July, the New York City housing market experienced a seasonal slowdown as more New Yorkers continued their summer travels. However, StreetEasy® data indicates a rising trend in the number of listings entering contracts compared to the previous year. In July 2023, listings on StreetEasy entered contract, marking a 4.3% increase from the same period last year. This follows a 2.2% year-over-year increase in June.
Key Takeaways:
1. Despite Summer Slowdown, Luxury Sellers Maintain the Upper Hand
Despite the seasonal slowdown, the luxury market, defined as the top 10% of for-sale listings, remained strong. The starting price for luxury listings was $4.5M in July, a 12.5% increase from the previous year. In Q2 2023, 382 listings above this threshold entered contract, a solid increase of 29.9% from Q1 2023. Although slightly lower than the previous year, this signals a substantial recovery from the second half of 2022.
Discounts were rare in July, with only 5.2% of luxury listings lowering asking prices, suggesting sustained buyer interest. Luxury homes in July had a 94.8% sale-to-list price ratio, indicating that sellers still have the upper hand in the luxury market.
2. Luxury Buyers Are Shopping in Manhattan Again
Manhattan remains the primary market for luxury homes. Out of 89 luxury contracts signed in July, 81 were in Manhattan. The median asking price of the Manhattan luxury market rose 11.5% year-over-year to $7.75M. Wealthy buyers are particularly interested in condos in new construction buildings, primarily in Midtown, driving up overall luxury market prices.
The median asking price of all for-sale listings in Manhattan rose 11.9% from a year ago to $1.595M in July, reflecting the increasing overall expense of the Manhattan market. Low new listings are helping sellers maintain their advantage.
3. Brooklyn Joins the Million Dollar Club as Prices in the Borough Hit New Record
Brooklyn's housing market remains competitive, with the borough's median asking price reaching $1M in July, a record high. Rising asking prices reflect the borough's continued popularity among buyers across various price tiers.
Limited inventory relative to demand is fueling competition in Brooklyn. The sale-to-list ratio is higher than in any other borough, indicating that sellers will likely maintain their advantage this year.
4. Queens Remains a More Affordable Destination for Buyers, But Inventory Is Tight
Queens continues to offer more affordable homes, with a median asking price of $648,000 in July. Although the increase in median asking price has been modest compared to Manhattan and Brooklyn, Queens remains a competitive market.
Low inventory is advantageous for sellers, allowing them to maintain their advantage in the market. Sellers who price their homes well are likely to attract strong interest from buyers.
5. Asking Prices Will Rise and Sellers Will Stay in the Driver’s Seat This Year
In the second half of the year, asking prices in NYC are expected to continue rising across all price tiers. The city will remain a seller’s market due to declining new listing inventory. Many homeowners, locked into low mortgage rates, are reluctant to put their homes on the market. This limited inventory will help sellers maintain their advantage this year.
Overall, the New York City housing market remains dynamic and varies from neighborhood to neighborhood, making it essential for buyers and sellers to stay informed.
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