It’s been a tough year for real estate in many cities, and New York City experienced the dip in the market early on. But according to New York Magazine’s recent Curbed report, it for sure is a buyer’s market now.
From the spring slump, traditionally the busiest season for home buyers, the summer season roared back with Manhattanites buying second homes in Brooklyn, along with the great urban flight which continues to kick up sales in the suburbs.
Higher ticket, higher taxes
Unfortunately, the market for properties over $2 million is stagnant right now, and in some cases the owners are taking them off the market. Much of this trend is due on large part to changes to the double whopper of the SALT tax and the Mansion tax in recent years.
Although listings in this market remain frozen right now, demand for homes below that price point is beginning to meet inventory both in Manhattan and especially Brooklyn, which is keeping prices relatively stable.
Market trends in the boroughs
Inventory has gone up in Manhattan, while boroughs like Brooklyn have seen a 38.7% surge in new contracts in August. In that same month, Long Island saw 34% increases on single-family home sales, and 38.8% rise in condo sales. And while Manhattan prices dropped over the summer months, sales volume and new listings are up in recent weeks, suggesting a partial return to normal expectations.
Meanwhile, Queens has had a calmer ride after the market bottomed out at a negative 56% in April, steadily gained through the summer and peaked in July. A slight dip into August had 25% fewer sales over 2019 but a 2% rise in median sales. The Bronx has seen similar trends with a 33% price surge in May, steady growth through July before dipping in August. Volume is down over 2019, but median prices have gone up 9% over the previous year.
Understanding the market
If you are ready to jump into the market, whether to buy or sell a home, condo or co-op, it is important to know where to look, who to talk to and what to go for. Due diligence, sale and purchase agreements and corporate documents for co-op apartments, for example, can be quite complex.
Whether it involves resolving title issues before putting your property on the market, arranging inspections or getting help with closing, it helps to get assistance from established legal professionals.