New York City’s housing market has slowed in recent months, but the tides appear to be turning as sellers lose their leverage.
For-sale inventory rose year-over-year for the first time since July 2021, new data published by StreetEasy show. More New York City sellers lowered their asking prices and homes spent longer on the market longer compared to a year ago.
New York City’s market is resembling 2019,”when rising inventory led to more price cuts and tempered sale prices,” Streeteasy economist Kenny Lee wrote.
Mortgage rates passed 7 percent in November for the first time in over 20 years, tanking activity as borrowing costs ballooned. Sellers stayed in their homes, wary of giving up a lower rate, sinking new listings 16.7 percent year-over-year.
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Despite the drop in activity, New York City’s for-sale inventory is up 1.7 percent compared to November 2021. The slight rebound comes as homes sat on the market for 11 days longer than the previous year and rates sidelined buyers.
“Accelerating seller withdrawal is preventing buyers from taking the upper hand,” Lee wrote. “Buyers who can afford to stay in the market are competing for a limited number of homes, and well-positioned sellers can expect competitive offers — although more listings are vying for buyers’ attention now compared to last winter.
While sellers are increasingly willing to cut their ask — nearly 12 percent did so in November, a 2.1 percent annual increase — they’re still pricing optimistically.
The median asking price in Manhattan was nearly $1.6 million in November, the highest since January 2020. But selling prices have been stagnant, falling 0.5 percent since their post-pandemic peak in August to $1.1 million. Prices in Brooklyn and Queens remain similarly elevated.