Photo: Jeff Turner/Flickr
Outdoor temperatures aren’t the only thing that drops in New York City during the frigid winter months — real estate transactions generally also experience a drop in volume. October’s markets indicators are pointing to a “slower than usual” pace in the winter months ahead in New York City, particularly in Manhattan and North Brooklyn, according to new data from the online listing site StreetEasy.
In Manhattan, even though resale prices are still rising, they are growing at the slowest pace in five years. Fewer homes went into contract in October compared to last year, and two of the city’s priciest submarkets — Downtown Manhattan and North Brooklyn, which includes Williamsburg — recorded price declines. This would seem to indicate that “competition is notably softening.”
The median resale price in Manhattan increased 0.5 percent in October from last year to $982,042, which is the slowest annual growth since February 2011, according to StreetEasy. Manhattan pending home sales dropped 16.2 percent year-over-year in October.
Downtown Manhattan, the borough’s most expensive submarket, recorded a nearly 2 percent price decline from last year to about $1.2 million in October. Meanwhile, resale prices grew in most other Manhattan submarkets in October, including Upper Manhattan, (3.2 percent), Midtown (1.7 percent) and the Upper East and West Sides (1 percent each, respectively).
Additionally, homes in the Downtown submarket took a median 13 days longer to go into contract when compared to October 2015. This would likely be indicative of “increased hesitation among buyers.”
Similarly, in North Brooklyn saw a 44.3 percent share of price cuts — the largest of the borough. Sellers received 92 percent of their asking price, down from 99.6 percent recorded in October 2015. Most notably, in October the median number of days on market in North Brooklyn jumped to 88 days from the 35 days recorded last year.
“High-end sellers are already cutting prices as they adjust to a more restrained market. Buyers looking in formerly ultra-competitive areas may find the ball is back in their court,” said StreetEasy economist Krishna Rao.
Click here to read the full report.