Photo: Robert Clark
Homebuyers in Manhattan should expect the market to be highly competitive this summer as buyers face depleted inventory, according to a newly released report by the listing site StreetEasy.
And, homebuyers looking at the lower-end of the price spectrum are likely to have the hardest time finding an affordable home.
The median Manhattan resale price rose 1.3 percent from last year to $993,592 in April — a new record high, StreetEasy says. But as prices went up, the number of available homes for sale went down compared to last April.
The number of resale homes on the market dropped 11 percent year-over-year in Manhattan in April, while lower-priced inventory recorded even larger declines. Inventory in Manhattan’s most affordable submarket, Upper Manhattan, fell by 25 percent from last year in April.
“Ongoing job growth and more confidence among first-time buyers has boosted demand for homes, particularly in more affordable areas of the city,” writes StreetEasy Senior Economist Grant Long.
However, construction in lower-priced areas has not kept up with demand. ”This has lowered inventory heading into the busy summer months and will keep competition high for buyers and prices rising at a faster pace this summer,” Long told BuzzBuzzNews.
As the summer homebuying season heats up, lack of inventory is likely to continue to drive prices up and keep some hopeful homebuyers out of the market.
Meanwhile, as BuzzBuzzNews recently reported, now continues to be a good time to be a renter in Manhattan. The median Manhattan rent dropped 1.1 percent year-over-year to $3,232 in April. Rent has fallen steadily since last fall, says StreetEasy.
And on top of falling rent, landlords are more willing to negotiate to keep apartments full, offering everything from periods of free rent to Netflix subscriptions to prospective tenants to sweeten the deal.
“For renters, this summer will be one of the most favorable shopping environments that we’ve seen in years,” writes Long.
With demand likely to rise this summer, landlords are likely to feel the heat — which is great news for renters.
“Landlords will likely continue to offer concessions, particularly in areas with large amounts of new units, such as the Financial District.”
Click here to read the entire report.