NYC housing market slows down in every category

At the beginning of this year, the New York City real estate market was on a hot streak with record-high prices, tough competition among buyers, and limited inventory. A few months later, the hot sales market is cooling off. 

Newly signed contracts for Manhattan condos and co-ops fell nearly 30 percent from last year, according to the report by Miller Samuel Inc. Manhattan’s single and multi-family home market also saw a decrease in contract signing activity, which fell 9 percent from June 2021. 

Sharply rising inflation, high mortgage rates, Russia's invasion of Ukraine, and stock market declines are among the factors contributing to the slowdown in the sales market. “I think the real problem right now is that we have boatloads of uncertainty,” Miller Samuel CEO Jonathan Miller told The Real Deal. 

Manhattan’s luxury home market saw a jump in the number of homes for sale. The new listing inventory went up among co-ops worth more than $5 million. Meanwhile, the number of co-ops listed for $500,000 or less dropped 18.5 percent. 

In Brooklyn, new contract signings fell 32 percent for condos, 23 percent for co-ops, and a little over 5 percent for single and multi-family homes. The biggest decline in signing activity was among listings asking less than $500,000. People are still interested in buying more affordable units. But due to the significant increase in prices, these homes are much harder to find. 

The number of new co-op listings went down more than 26 percent across all price points, except for homes listed in the $1 million to $2 million price category. The number of single and multi-family homes listed in Brooklyn has also decreased in all subs except those asking between $2 million and $5 million. 

Resources: 

“Elliman Report: New York New Signed Contracts 6-2022,” (Miller Samuel Inc., 2022)

“The stats don’t lie: NYC’s housing market is cooling,” by Harrison Connery (The Real Deal, 2022)

“Q2 2022: The Quarter Is Marked By A Slowdown For New York Real Estate,” by Frederick Peter (Forbes, 2022)