These 10 NYC neighborhoods experienced the biggest drop in home sales in the past year

The New York City housing market has experienced a noticeable slowdown over the past year. The increase in borrowing costs, high home prices, and low inventory have interrupted the plans of both sellers and buyers. Prospective buyers are becoming more cautious and are looking for more affordable options, while sellers are hesitating to list their properties on the market. 

In 2023, nearly every NYC neighborhood noticed a drop in home sales, according to the latest report from PropertyShark. The real estate data provider analyzed 225 NYC neighborhoods and found that a whopping 193 of them experienced a year-over-year decrease in the number of sales. PropertyShark looked at all residential property sales recorded in ACRIS between January 1, 2022, and March 31, 2023.

“Following the buying frenzy of the pandemic, a market cooldown was to be expected,” the report reads. “However, with the ongoing economic uncertainty and the dynamic evolution of federal interest rates, many NYC buyers and sellers have stepped to the sidelines, further slowing the market. In fact, the latest data shows that 40% fewer sales were closed during Q1 2023 than in Q1 2022.”

Dongan Hills, Staten Island, logged the sharpest decline in home-buying activity, which fell 85.7 percent in one year. The number of home sales recorded in this neighborhood went from 35 in the first quarter of 2022 and only 5 at the beginning of 2023. Other Staten Island neighborhoods that noticed a sharp decrease in home sales include Grymes Hill-Silver Lake, St. George, Tottenville, and Grasmere.

Homecrest, Brooklyn, claimed the second-largest drop in sales. The home sale volume in this neighborhood fell 82.1 percent year-over-year, from 95 deals to 17. Home buying activity also took a downturn in Cobble Hill. Nine home sales took place in Cobble Hill in the first three months of 2023, down from 32 deals a year ago. In Queens, home sales slowed the most in Ditmars-Steinway, Auburndale, and Fresh Meadows.

At the same time, Queens also claimed 10 of the 22 NYC neighborhoods where the number of home sales has increased in the past year. Hollis, East Flushing, Long Island City, and the Astoria Heights-Upper Ditmars all saw at least a 50 percent increase in home sale volume. Brooklyn was home to only four neighborhoods with sales on the rise, including the Prospect-Lefferts Gardens area, where home-buying activity surged 100 percent. 

Image credit:

Adam Moss (Flickr)

Resources:

“Which NYC Neighborhoods Saw Sales Fall the Most in the Past Year? Staten Island Claims Top Spot with Dongan Hills’ 86% Drop as Sales Contract in 193 Neighborhoods,” by Eliza Theiss (PropertyShark, 2023)