The number of homes offering price reductions is a good indicator of buyer demand. The Manhattan housing market is still very competitive. Monthly contract activity continues to operate 30% above seasonal averages, with monthly new supplies almost 25% above typical levels. After a buying frenzy of more than a year, the market is showing signs that it could be slowing down.
Demand seems to be shifting from white to red hot, suggesting that Manhattan could be moving from a seller's market to a more stabilized market. Prices are unlikely to plummet, but cracks are showing. In the four-week period ending June 26, the average sales price of newly listed homes fell 1.5 percent from its all-time high this spring and, on average, 6.5 percent of listings lowered their prices each week, according to a Redfin report. Real estate prices have been rising tremendously across the region.
What will the current average price buy in the municipality where you want to live? As house prices rose and median sales prices increased by 10.7% year-on-year, buyers had to act quickly, resulting in a rapid pace of the market. But Manhattan isn't the only place where buyers struggle to get an ad. Buyers face competition across the country, though this may decline as rates continue to rise Brooklyn is its own superstar when it comes to real estate, often the first choice for prospective buyers looking for an apartment in New York City, but its median in recent years has still remained below Manhattan's. The slight slowdown in transaction activity, the increase in luxury days in the market, and the mediation of the latest selling price suggest that the seller's market in Manhattan real estate may be disappearing.
With just under half a million residents, Staten Island is the smallest district, but it has many of the same big problems with its housing market as the rest of the city. However, like other metropolitan markets, the peak level of activity broke records, wrote John Walkup, co-founder and chief operating officer of New York-based real estate analysis firm UrbanDigs. They're renovating them, Kirsten Jordan, Douglas Elliman's real estate advisor and cast member of “Million Dollar Listing”, told Yahoo Finance Live. This influx could lead to increased international investment in residential real estate in New York City and increased demand for luxury after the pandemic pause and cumulative demand, StreetEasy says.
Not surprisingly, realtors, who derive their income from home sales, are optimistic about buying now, arguing that, for the first time in a long time, buyers could get a deal. As the pandemic eases, this summer could be the last chance for New Yorkers to benefit from Manhattan's deflated housing prices.