NYC sellers raise asking prices to the highest level in six years
- A declining number of listings gives buyers less room for negotiation and emboldens sellers
- But the winter months may be a good time to get a deal for buyers who stay in the market
An October snapshot of the New York City real estate market reveals a nearly 24 percent jump in contracts, despite mortgage rates rising to nearly 8 percent. The burst of demand seemingly encouraged sellers to raise asking prices to the highest level in six years.
NYC properties going into contract increased last month after a sharp decline in September, according to a new report from StreetEasy. A total of 1,858 properties entered contract in October, rising 23.6 percent from September and 8.1 percent from October 2022.
October is typically a busier month than September—when buyers are shaking off a vacation mindset or dealing with back to school. Notably, the increase in new contracts from September to October was close to the five-year average of 26.7 percent, despite mortgage rates rising to a 23-year high.
Thanks to that burgeoning demand, StreetEasy found sellers raising asking prices to record highs: The NYC median asking price in October was $1.1 million, the highest since 2017 and 10.6 percent higher than a year ago. Median asking prices across the city are up from last year, with Brooklyn showing the strongest increase as a result of fewer listings.
A declining number of listings gives buyers less room for negotiation. StreetEasy found 35,749 properties listed for sale so far this year, 15 percent fewer than the same period last year.
According to Kenny Lee, economist at StreetEasy, one in five homes that sold in October received a price above initial asking, suggesting that buyers may still expect to see bidding wars, especially if a listing is priced below market.
Rising mortgage rates can push some buyers to the sidelines, he says, and that means more wiggle room for buyers who stay in the market going forward.
“Heading into the colder months, there are generally fewer buyers to compete with and sellers become more willing to negotiate,” he adds.
You Might Also Like