Inventory in New York City Rose in November, as Did Price Cuts - Mansion Global

After nearly three topsy-turvy years, the real estate market in New York City has started to look more like pre-pandemic times, according to a Tuesday report from StreetEasy. 

Rising borrowing costs resulted in home sales in the city dropping 35% in November compared to the same time a year ago, the data showed. In addition, 11.7% of sellers cut their asking prices, up 2.1% from last year. 

“The New York City market is drawing a resemblance to 2019, when rising inventory led to more price cuts and tempered sale prices,” StreetEasy economist Kenny Lee said in the report. 

Indeed, inventory was up 1.7% annually in November, marking the first yearly increase since July 2021. Plus, a typical home took an additional 11 days to sell—75 on average—than it did last year. 

“In the second half of 2021, resurgence in demand driven by record-low mortgage rates drew down available inventory, which intensified competition among buyers in spring 2022,” Mr. Lee continued. “Sales inventory is now rebounding as listings are sitting on the market for longer and more buyers wait on the sidelines.”

In Manhattan, the typical home sold for $1.1 million last month, about 0.5% below its peak in August, the figures showed. At the same time, new listings fell 16.7% year over year and nearly 11% of listings got price cuts. A typical listing with a price cut slashed its asking price by 5.3%l—the highest margin since October 2020, when the market was reeling from the early impacts of the pandemic. 

“Higher mortgage rates, financial market volatility and an uncertain economic outlook are making Manhattan buyers hesitate despite their typically higher budgets compared to buyers in other parts of the city,” Mr. Lee said. 

Meanwhile, in Brooklyn, sales were down nearly 35%, and 13% of listings saw price cuts, the figures showed. But there’s still fierce competition for higher priced homes. Inventory fell 8.2% year over year, while sales prices rose 2.5% annually to $695,000.

“Listings [in Brooklyn] typically spent 62 days on the market, roughly the same as November of last year,” Mr. Lee explained. “In comparison, the top third of listings by price point—with asking prices at or above $1.375 million—spent a median of just 56 days on market in November.” 

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