The Market Report: August 2023

Our New York City real estate market remains tight this summer. We entered this past month with Manhattan property inventory down 9% year-over-year and Brooklyn down 11%. Likewise, we left July with Manhattan down 7% and Brooklyn down 4% month-over-month. But buyers are out there, and in many neighborhoods, competition keeps pricing stable.

 

Going into July, Manhattan average pricing was mostly flat year-over-year and slightly down 2% month-over-month, and Brooklyn average pricing was up 13% from the prior month and 8% up year-over-year. The average pricing was largely driven by the townhouse market in central Brownstone Brooklyn neighborhoods. The borough’s condo market was only up slightly by 3% and the coop market flat from the same time last summer. Sellers and buyers have also been meeting closely with marginal discounts, Brooklyn at just 2% off the last ask price, and Manhattan 4% off.

 

Despite low inventory and moderate shifts in pricing, buyers in general are taking longer on decisions. Going into last month, there was a 20% increase of days on the market for listed properties in Manhattan and a 9% increase in Brooklyn year-over-year. The number of signed contracts entering July was down 6% year-over-year in Manhattan and down 11% in Brooklyn, with the trend continuing into August with the number of currently signed contracts down 5% in Manhattan and nearly 3% in Brooklyn. In general, we are seeing more hand-wringing with buyers than last summer, taking more time to consider options, and longer to sign contracts, despite similar rate and inventory environments.

 

We speculate similar sentiment and activity to persist as we round out the summer months. Practical pricing is key for movement, and we anticipate buyers continuing to respond accordingly with moderate negotiation with realistic sellers. Even attractive properties, unattractively priced are likely to continue to face lingering time until adjusted to meet the market. We also don’t foresee significant inventory increases across the boroughs going into fall, and expect pricing to remain stable in general.

 

If now is your time to purchase, gain a strong understanding of the specific property sector you are pursuing – size, kind, pricing and neighborhood. That understanding and preparation will position you for a quicker, more competitive response over more speculative buyers that will enter the pool as we move into the autumn months.