Housing Inventory Catches Up to Demand in New York City
New York City has been one of the nation’s tightest real estate markets for year, yet this is changing.
According to local real estate marketplace StreetEasy sales inventory reached new highs across the city over the last quarter, leading to a record number of homes offering price cuts
The share of homes with a price cut rose in every submarket across the city, led by the Upper East Side, where one in three homes for sale received a price cut, according to the Q2 2018 StreetEasy Market Reports.
Amid higher inventory, sales prices started to cool
The StreetEasy Price Indexic fell 1.1 percent in Manhattan to $1,160,419and stagnated in Brooklyn at $724,733.
This drop in Manhattan home prices is the largest year-over-year decrease since the financial crisis. Queens prices bucked this trend, increasing 7.3 percent to $530,556 – the highest level on record.
Inventory has reached the highest level since 2011. Sales inventory in Manhattan increased 15.2 percent since last year. Inventory rose in every Manhattan neighborhood except one: in Hamilton Heights, it dropped by 11.8 percent from last year.
The number of homes offering discounts reached an all-time high. More than one in four homes for sale (28 percent) in Manhattan received a price cut in Q2, an increase of 5.3 percent over last year.
Will this be happening soon in other cities where prices have gone insane in recent years? We’ll see.
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