We are in a neutral market with a slight dip towards a buyers’ market overall. This is due to the increase in supply as contracts catch up. Our NYC market is still underperforming overall compared to where we usually are historically for a spring real estate season. Note that this underperformance does not extend to the luxury market, which has seen its best records over the past few years with this season being no different.
In Manhattan, supply has risen to 1,916 units, with May typically having around 1,544 units put on the market. While supply is up, contracts are down with 1,052 units in contract this month compared to the typical 1,123 units we see go into contract in May. Despite the lower level of contract signings this year, our numbers are higher than what were signed in May of last year. This is a good sign of recovery for the slower markets we have been having over the last few years.
In Brooklyn supply has increased to 1,116 units put on market this May. The contracts signed for May have also increased to 659. Compared to Manhattan, Brooklyn has a hotter market.
For our Queens market, the housing supply is starting to pick up but demand is still higher than the available inventory. This is resulting in higher prices and even bidding wars as buyers compete for the low amount of inventory available.
We have a few more weeks of the spring real estate season before things start to slow down for the summer in terms of sales. On the flip side, the rental market is very busy with pricing records being broken and intense competition. Buyers who have opted out of purchasing this year and sellers who have decided not to sell are finding themselves drawn to rentals rather than sales as macroeconomic impacts and uncertainty disturb their sale plans.
This pivot towards renting has resulted in record breaking prices in Manhattan and Brooklyn, with Manhattan’s median rental price being around $4,800 and Brooklyn’s median rental price being around $4,200. This is the first time Brooklyn’s median rental price has broken the 4K mark.
Has this been informative for you? What are your plans for housing this spring season? Contact me to discuss!
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Contract Numbers:
Manhattan had a total of 1,052 contracts signed.
Brooklyn had a total of 659 contracts signed.
