New York home buying has risen to levels not seen since the spring of 2019, according to StreetEasy’s October 2020 market reports – an optimistic indicator for the city’s economic recovery.
In Manhattan, 993 homes entered into a contract, the most in any month since May 2019. Queens has signed nearly 455 high contracts. In Brooklyn, the buying excitement continued, as monthly pending sales reached a new high of 824, a record previously broken in March 2019.
The increase in pending sales is welcome news for New York City’s economic recovery, as it shows that many residents are making a long-term investment in the city. It also indicates that sellers are accepting offers more in line with the record high supply of homes on the market.
Growing demand from the break in buying homes during the pandemic played a major role in the October increase in homebuyers. Favorable interest rates, greater negotiating power, and the proliferation of price reductions have also created incentives for New Yorkers to return to the market. Nearly 15% of Manhattan and Brooklyn sellers and 12.3% of Queens sellers reduced the price of their home in October – equal to what is commonly seen during the April and May home shopping season.
“Buyers returned quickly after the reopening of New York’s economy this summer, which led to a busy fall home shopping season. Looking ahead, we could see home sales slow in the winter months if coronavirus cases continue to grow. Fall data suggests,” that when the pandemic is relatively over, a buyer is demanding homes in New York City to stay high, ”said StreetEasy Economist Nancy Wu.
“With news of a possible vaccine, 2021 may be one of the busiest home shopping years we’ve ever seen. That said, buyers will still be in the driver’s seat when it comes to negotiation. Sellers face a lot of competition and need to adjust prices accordingly, even while demand will grow. “
October 2020 Market Reports By Township
Manhattan Vendors Accepted Offers Very Below Ask
In Manhattan, the average sell-to-list price (how much a home sold compared to its starting price) fell to 88.6% – the lowest recorded. The foreign market negotiations indicated by this figure were one of the factors that also contributed to falling prices. In October, the Manhattan StreetEasy Price Index [i] decreased 5.0% compared to last year, the fastest pace since the Great Recession. The median price in Manhattan was $ 1,385,000.
In the midst of buying fury, Brooklyn buyers have plenty of options
Expected sales reached a record high in Brooklyn in October, but that was not the only record high in the township. Sales inventories also continued to explode, with an all-time high of 6,515 homes on the market – 9.4% higher than last year.
The Brooklyn StreetEasy Price Index fell 2.4% year-over-year – half the rate of Manhattan’s price rise. The median price in Brooklyn was $ 975,000.
Queens Prices Rose, Bucking Citywide Trend
The StreetEasy Queens Price Index rose 1.0% year-over-year, the only township analyzed to see growth. The average price demand in Queens in October was $ 650,000. The average sales ratio in Queens was 96.1%, which means that vendors in the township accepted offers very close to their initial price demand.
[i] The StreetEasy Price Indices track changes in resale prices of apartments, cooperative and city units. Each index uses a repeat-sale method to compare the sale prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Considering this methodology, each index accurately captures the change in house prices by checking the variable composition of homes sold in a given month. Street Indicator Price levels reflect average values of homes on the market. Data on home sales are obtained from the New York Department of Finance. Read the full methodology.
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