We hope that everyone is enjoying Fall in New York before the cold of Winter sets in. We are still experiencing heat in certain segments of the market and others have definitely continued their cooling trend. As we have been predicting for some time, the high-end market continues to soften as supply levels soar and demand for these types of properties decreases. However, we are still observing high levels of activity in the segment of the market under $2,500,000 and particularly robust activity under $1,500,000, where our team has had multiple properties spark bidding wars over the past month.
Not only are we seeing vastly different activity levels in different price segments but activity and price in Brooklyn and certain parts of Queens are showing little sign of slowing down as well. According to New York real estate data from Jonathan Miller; condo, co-op, and one to three family houses all set price records in Brooklyn in the third quarter. In contrast to the rising inventory in Manhattan, much of Brooklyn is seeing lower inventory levels. Areas like Long Island City, in Queens, are seeing a bump in activity due to Brooklyn buyers looking for more opportunity along with the impending L-train shutdown.
In Manhattan, inventory levels are predictably increasing most profoundly as we get into higher price points. The effect of this is not only lower prices and more negotiability on sales price but many frustrated would-be-sellers are testing the rental market. This has led to, as you would expect, increased rental inventory and subsequently lower rents and more owner concessions. Mirroring the sales market, this effect is more pronounced as you get into higher priced properties.
In general, if you are a seller in the normal price range or a buyer in the luxury market, these trends are working in your favor. We will continue to keep you up to date on recent happenings and trends in the market. We hope that you find this informative and useful and, please, as always, reach out with any questions on how you can take advantage of these current trends or how to protect your real estate assets. Also, feel free to reach out with any questions regarding a specific trend or segment of the market. The LevinKong Team is available to serve all your New York City real estate needs and those of your friends, family and colleagues.