Is now the time to apartment hunt in NYC?
There are signals that Manhattan’s real estate market is starting to pick up again. According to UrbanDigs, new listings in Manhattan have returned to normal levels and are starting to surpass where they were a year ago. It’s unclear how long it will take for inventory overall to return to normal levels but the current dynamics favor buyers over sellers. Supply is coming back, but demand is a little depressed, which will generally drive prices down. Prices are falling on the island. And now, in Brooklyn, signs are starting to emerge that the housing market may be shifting, also giving buyers the advantage over sellers. So if you’re willing to apartment hunt now, NYC is a ‘buyer’s market on steroids.
The number of homes for sale is starting to return to 2019 levels — there were 424 new Manhattan listings added during the third week of August, compared to 198 in 2019, an increase of 114 percent, and 140 contracts signed, compared to 177 a year ago, a decrease of 21 percent. August saw an increased buyer activity in Manhattan resulting in 25% more contracts signed compared to July. Manhattan supply (non-new development) saw only a 5.2% increase in supply, far less than the robust 27% increase we saw in July. The pace of new supply, while steady around 600 new units in July, declined each week in August with 413 units coming to market in the last week of August. If inventory jumps in September and October as well, it’ll be a clear sign that homes aren’t selling and that buyers have the upper hand.
But most significantly, sale prices have fallen. Not by much — not yet! In April, June, and July, the median sale price of a Brooklyn home slipped by 3 to 5 percent year over year. Even though prices haven’t fallen by much yet, buyers have the power of negotiating because of the supply on the current market. So if you have been thinking about buying and have the savings to do so, start hunting now. You’ll most likely get a great deal!
Beatriz Moitinho is a Real Estate Salesperson, specialized in Luxury Real Estate and a Productivity Coach at Keller Williams New York.