An influx of sellers joined the New York City market, after a tight spring market those looking to purchase a home can choose from a wider selection this summer.
The New York City market saw a 1.4% increase in home sales from last year. Across the five boroughs, from January to May there were only 30,892 available homes for sale, 2.8% fewer than last year. However, from January to May, 17,826 homes entered the market, an annual increase not seen since 2022. Manhattan and Queens saw the most influx, StreetEasy reported today.
Inconsistent and high mortgage rates made it difficult for prospective buyers and sellers to join the market. In March 2024, the 30-year mortgage rate declined to 6.8% from 7.6% and most recently, it has increased again to 7%.
Those who did join the housing market had to choose from a tight inventory, as 15.4% of homes sold above initial asking price.
In April, StreetEasy reported that “despite high asking prices, buyers are now regaining the upper hand with ample room for negotiating,” wrote Kenny Lee, economist at StreetEasy.
In Manhattan more than in other boroughs, this trend continues.
“The median asking price in Manhattan remained flat compared to last year at 1.595 M,” wrote Lee.
In comparison, Brooklyn’s housing market remains the most competitive with 98.4% of homes sold above their initial asking price. In Queens and the Bronx, the median asking price is also on the rise.
“Despite gains in new listings, the number of listings overall on the market remains down year-over-year,” wrote Lee. “But, as more new sellers join the market, the drawdown in total inventory, the number of new listings and listings already on the market, is finally slowing,” he added.
While a small victory, the influx of new listings will slightly relieve New York City’s tight inventory.
