NYC homes are getting more expensive but selling quicker, new report finds

The New York City sales market is experiencing strong demand from buyers despite rising prices. The median NYC home spent only 46 days on the market in April 2022, 20 days fewer than last year, according to the report from StreetEasy.

A similar rapid pace was last seen six years ago, in April 2016, when the median NYC home sold in 44 days. The declining number of days an average home spends on the sales market combined with the rising prices makes 2022 one of the most competitive years for the New York City housing market. 

The median asking price for a home in Manhattan reached $1.45 million, up 7.4 percent year-over-year. However, Manhattan homes are still less expensive now than they were in April 2019, the last spring before the pandemic started. 

Brooklyn and Queens home prices are also rising. The median asking price for a Brooklyn home went up 6.6 percent year-over-year to $975,000. Queens home prices have been going up for three months in a row. However, you can still find good deals in this borough. The median asking prices for a home in Queens declined 2.5 percent year-over-year and 13.1 percent from April 2019. 

“Across the country, the real estate market may be turning a corner toward normalcy, with rising interest rates and more sellers listing their homes,” Zillow senior economist Josh Clark told StreetEasy. 

“New York City is extremely unique in that rising rates do not necessarily slow down demand. Cash buyers or those with large budgets who pay little to no mind to rising rates are still very much in the market to buy. For that reason, we may see a divide in which demand for luxury homes stays strong, while demand for homes in more affordable price tiers begins to soften.”

The rising demand from homebuyers could be tied to the recent surge in rents. In April, the median rental price reached a new all-time high in Manhattan and went up in Brooklyn and Northwest Queens. The significant jump in rents motivates more New Yorkers to look for a home to buy since the monthly cost of renting versus purchasing becomes more comparable.

Resources:

“NYC Homes Sell at Fastest Pace in Six Years,” by Emily McDonald (StreetEasy, 2022)