The days are getting shorter and the weather is getting cooler, both sure signs that we are fast approaching the holiday season slowdown in the NYC real estate market. After a strong August and September, October proved similarly active. There were modest gains, in general, across the resale market and the opposite was true in the new development market.
Median price in the resale market increased approximately 2.5% and the new development market saw a slight decrease last month. The gain in median resale price was predominantly due to the continuation of high levels of demand, particularly in lower price points, while the typical seasonal uptick in inventory fell short of expectations. This was especially true in Brooklyn where a lack of supply lead to median price gains of approximately 10%. The opposite was true in new development, where we witnessed supply that far outweighed demand.
Some key data points to summarize October’s market: supply was down across the market by approximately 3%, sales were up approximately 4%, and days on market was up approximately 6%.
Overall, what we saw was the paramount importance of properly pricing properties in the current market. The sophisticated buyer pool in NYC is avoiding overpriced inventory by waiting for price drops and the weakening negotiability that comes with increased days on market. However, well-priced or slightly under-priced inventory is creating competitive environments that often result in bidding wars and above asking price contracts. Anecdotally, we recently strategically priced a two-bedroom condo in midtown for a quick sale. This approach was a success; we received 10 offers within a week and achieved an accepted offer 7% above our asking price.
While we are advising most of our sellers to hold off listing their properties until after the holidays, there are some areas of the market where lack of inventory defies this seasonal approach. For buyers, the holiday season is often a great time of the year to take advantage of inventory that has been languishing on the market while competition from other buyers decreases.
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.