NEW YORK, Aug. 12, 2020 /PRNewswire/ -- A flood of new
homes went up for sale in New York
City in July, but other indicators — including pending sales
and off-market price negotiations — show the city's sales
market in the midst of a major slowdown, according to StreetEasy's
July Market Reportsi.
Citywide, the total number of homes for sale in July was 6%
lower than last year. But following the Phase 2 reopening of most
real estate activity in NYC, a record high 2,714 new listings came
onto the market in Manhattan.
That's an 87% increase over July of last year — a surge in
inventory akin to what's typically seen at the start of
home-shopping season in April.
Yet while sellers have begun to return to the market, July data
shows that many of them are not meeting the price points buyers
have in mind.
This July, 37% fewer Manhattan
homes went into contract than in the same month last year. For
those homes that did change hands, the difference between what
sellers offered in discounts and what buyers actually paid reveals
a market that is still adjusting to a new reality.
Only 14.5% of Manhattan sellers
offered a discount in July, at a median discount of 5.2%. But the
homes that went on to close after off-market negotiations sold for
a median of 10%, or $117,000, less
than their initial asking price. This difference between initial
ask and final closing price is the largest ever recorded by
StreetEasy, going back to January
2010.
"COVID-19 has exacerbated the weakness in the Manhattan sales market. If the sellers that
have returned to the market are serious about making a sale, they
will have to lower their prices accordingly," says StreetEasy
Economist Nancy Wu.
"Very few homes on the market are getting significant price
cuts, even though the small pool of successful sellers are
accepting offers well below their initial asking price," Wu says.
"Once this reality sets in, asking prices will inevitably begin to
mirror what we're already seeing in off-market negotiations."
See below for additional sales and rental market trends across
Manhattan, Brooklyn, and Queens.
Post-Pandemic, Manhattan Homes Linger on the Market
Manhattan pricesii
fell 4.2% year-over-year to $1,450,000. Prices dropped the most in the Upper
West Sideiii submarket, declining 5.8%. The median
asking price of $1,499,000 was the
lowest recorded since 2014. Homes lingered on the market for a
median of 144 days — 68 days longer than last year.
Brooklyn Prices Drop Amid Record New Inventory
Brooklyn prices fell 2.1%
year-over-year to $969,000.
Brooklyn sellers accepted offers
at a median of 8%, or $62,400, less
than their initial asking price — the largest difference on record.
Sellers added 1,724 new listings to the market — a 50.3% increase
over last year, and a record high for the borough.
Queens Prices Rose, But Buyers Still Negotiated
Home prices in Queens bucked
the citywide trend, rising by 1%. The median asking price in the
borough was $650,000. Homes sold over
a week faster (9 days) than last July, remaining on the market for
61 days. Similar to Manhattan and
Brooklyn, Queens homes closed for record discounts
compared to initial asking prices, with sellers accepting offers
6.3%, or $32,287, lower than their
initial asking price.
View all StreetEasy Market Reports for Manhattan, Brooklyn, and Queens, with additional neighborhood data and
graphics. Definitions of StreetEasy's metrics and monthly data from
each report can be explored and downloaded via the StreetEasy
Data Dashboard.
About StreetEasy
StreetEasy is reimagining the way people buy, sell, and rent
homes in New York City and
New Jersey. Used more than any
other local real estate platform, StreetEasy's website and mobile
apps provide vetted and verified listings, plus intuitive search
tools and data-driven guides to help people unlock the opportunity
of living here. Consumers and real estate professionals can stay
up-to-date on the latest real estate trends
through StreetEasy's Market Reports and explore and download
market data for free on the StreetEasy Data Dashboard.
Launched in 2006 and based in NoMad, Manhattan, StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG) and is a registered trademark of
Zillow, Inc.
iThe StreetEasy Market Reports are a monthly overview
of the Manhattan, Brooklyn and Queens sales and rental markets. Every three
months, a quarterly analysis is published. The report data is
aggregated from public recorded sales and listings data from real
estate brokerages that provide comprehensive coverage of
Manhattan, Brooklyn and Queens, with more than a decade of history for
most metrics. The reports are compiled by the StreetEasy Research
team. For more information, visit
https://streeteasy.com/blog/research/market-reports. StreetEasy
tracks data for all five boroughs within New York City, but currently only produces
reports for Manhattan,
Brooklyn and Queens.
iiThe StreetEasy Price Indices track changes in resale
prices of condo, co-op, and townhouse units. Each index uses a
repeat-sales method of comparing the sales prices of the same
properties since January 1995 in
Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index
accurately captures the change in home prices by controlling for
the varying composition of homes sold in a given month. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here.
iiiThe Upper West Side submarket includes Lincoln Square, Upper West Side, Manhattan
Valley and Morningside Heights
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SOURCE StreetEasy