The Market Report: May 2023

Hot Summer?

May is the month in New York City when we assess the ferocity of the spring market, as Memorial Day plans begin, weekend escapes get underway and summer waits around the corner. Our spring market continued with historically low inventory and low general activity across Manhattan and Brooklyn, but both displayed signs of pointing up.

We ended the first quarter of this year with Manhattan inventory moving up only slightly year over year and with over 25% fewer new listings. Manhattan also saw a 14.5% increase in contracts signed over the prior quarter. But the bigger picture is that the first quarter was down 32% in contracts signed year over year, and there were 35% fewer closed sales than the first quarter of 2022. Properties in the borough were on the market an average of 160 days for the first quarter but saw an uptick in negotiability from the same quarter last year, 5% to 7% off the asking prices, respectively.

Brooklyn had a similar story. The borough’s on-market inventory saw a 1% decline again from the prior quarter, leaving it at 5% from the same time last year. New listings are significantly down, 25% from the same time last year, but we saw a sizable increase of 22% from the prior quarter. Brooklyn also saw an increase in contracts signed, up 6% from the prior quarter. Again, the bigger picture shows a 37% decrease year over year.

Likewise, sales in the borough declined significantly, 18% from the prior quarter, leaving sales at 41% below the same time last year. Brooklyn saw a shorter average time on the market than Manhattan of 119 days and a slightly smaller trading discount at an average of 6% off the asking.

We ushered in a new quarter this past month, and general activity seems on the rise. April saw an increase in inventory in both Manhattan and Brooklyn from the prior month. We saw many properties have increased buyer showing requests, including those that have been on the market for several months. Given the current sentiment of buyers and sellers, we expect an increase in buyer activity and an increase in inventory, though certainly not radical. But given the pace of the prior months, our general sentiment is that it is going to be busier this summer for the market, with many sectors seeing a decrease in time on market, realistic pricing and fair negotiability.