The New York housing market is overall experiencing a shift, with declining prices giving buyers more leverage than they've had in recent years. However, high demand and limited inventory may keep prices high for New York City's luxury market.
Why It Matters
Based on an analysis from Pricing Culture provided to Newsweek, a significant decline in average listing prices over the past year signals New York has entered a buyer's market. That data shows a 6.2 percent decrease in average prices over the past 30 days and a substantial 16.2 percent drop over the past 365 days. A recent report from Rocket Homes also confirms New York is now in a buyer's market, suggesting "prices tend to be lower and homes stay on the market longer."
With 1,660 properties on the housing market, buyers have more options, which may compel sellers to reconsider their pricing.
What to Know
The New York residential market has seen a significant decline in the average price of new listings over the past year. This includes:
- A 6.2 percent decrease in average prices over the past 30 days.
- A 2.38 percent decrease in average prices over the past 90 days.
- A 16.2 percent drop in average prices over the past 365 days.
Several factors are driving the shift toward a buyer's market in New York:
- Inventory growth: With 1,660 properties currently listed in the New Residential Market and 415 in the top quartile, buyers have more options than ever. Increased supply gives buyers greater negotiating power.
- Economic uncertainty: According to the December 2024 Housing Market Trends Report from Realtor.com, economic uncertainty, including inflation, rising interest rates and stock market fluctuations have dampened demand, leading to price reductions
- Price adjustments: The same Realtor.com report noted the median listing price in the New York-Newark-Jersey City metro area has decreased by 1.3 percentage points compared to the previous year.
The $59 Million Listing: A Luxury Outlier
Unlike New York's overall housing market, the luxury housing market in New York City is currently a seller's market. Despite broader economic uncertainties, high demand and limited inventory have kept prices relatively high. Properties in prestigious areas are seeing strong interest and quick turnover.
The newly listed property at 217 W 57th Street #121 exemplifies the top tier of New York's luxury market. Listed at $59 million, it far exceeds both the overall market average and the top quartile average, based on an analysis from Pricing Culture provided to Newsweek:
- The property is 364.25 percent higher than the average market price of $12,708,776.94.
- It is 130.32 percent higher than the average price in the top quartile, which stands at $25,616,290.81.
While overall prices are declining, the high-end segment often caters to a niche group of buyers who may not be as impacted by broader economic trends.
What People Are Saying
In a recent report on the New York City Housing Market, Norada Real Estate Investment wrote: "One of the more compelling aspects of the current market dynamics is the increasing prevalence of price cuts. Data indicates that 10.4% of homes on the market reduced their asking prices in July, compared to 10.1% the previous year. This suggests that while the demand remains strong, sellers might be reassessing their expectations, paving the way for more balanced negotiations as inventory rises."
Pamela Liebman, president and CEO of Corcoran, said in a statement: "The Manhattan market is finally showing signs of a comeback, with demand indicators improving for the first time since 2022. We saw a rise in both closings and signed contracts, and deals are moving faster — marketing times are the quickest they've been in over two years. It's clear buyers are re-engaging, but value remains top of mind with price per square foot continuing to trend down for the sixth straight quarter. With demand outpacing new listings, we're keeping a close eye on the fall season. If the Fed continues to cut rates – bringing more supply back into the market – prices will continue to rise. For any prospective buyers out there, I wouldn't wait too long to make your move."
What Happens Next
According to data from Pricing Culture, the trajectory of the New York housing market will depend on several factors. Improvements in economic indicators could stabilize prices and restore confidence among buyers. For instance, if the Federal Reserve continues to reduce interest rates, mortgage rates may drop, making borrowing more affordable and encouraging more buyers to enter the market.
However, while the broader market adjusts, high-end properties may remain insulated. Luxury properties in prime locations are likely to retain their value, as wealthy buyers continue to seek out exclusive homes with top-tier amenities
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