New York City Real Estate: Increased Activity in the Market
The number of homes entering contract across New York City increased significantly year over year, thanks in large part to a decline in mortgage rates, according to a report by the real estate listing site StreetEasy.
Increase in Homes Entering Contract
Over this period, there was a 26.4% increase in homes entering contracts, from 1,326 in September 2023 to 1,676 in September 2024. This marked the most significant jump for the month of September since 2021. There were more new contracts across each week of the month compared to the previous year.
Pace of New Homes Entering Contract
The pace at which new homes entered contract increased with each week, going from 349 in the first week of September to 441 in the last week. The recent drop in mortgage rates, which fell to a two-year low, at 6.2%, led to more buyers entering the market.
More Sellers Coming to the Market
This also brought more sellers to the market, as they could then better afford their next home. Listings over this period of time increased by 7.1%, from 3,888 in September 2023 to 4,164 in September 2024.
Balancing Out the Market
The increase in new listings ended up balancing out the number of new contracts, with the total number of homes on the market decreasing slightly, down 0.2%, from 17,569 in September 2023 to 17,533 in September 2024.
Manhattan and Brooklyn
Inventory grew in Manhattan and Brooklyn, with no notable changes in this period.
Queens
However, Queens experienced a 3% decrease year-over-year, from 3,137 in September 2023 to 3,042 in September 2024. This decline in inventory, along with a strong demand for homes in the borough, led to a 3.4% rise in the median asking price, from $647,970 last year to $670,000 this year. The decline in inventory across Queens was also seen in co-ops, with a 2.5% decline, from 1,261 on the market last year to 1,229 this year.
New Contracts in Queens
Despite Queens experiencing a drop in inventory, new contracts across the borough increased significantly. There was a 17.9% increase year-over-year in new contracts, from 296 in September 2023 to 349 in September 2024. However, the limited inventory and growing demand left potential buyers with less negotiating power in terms of the cost of these homes. This was especially true when it came to co-ops, with those sold from July to September 2024 doing so for 98.4% of its most recent asking price, marking a 0.5% increase from the same period of time last year.
Conclusion
The recent decline in mortgage rates has led to a surge in activity in the New York City real estate market, with a 26.4% increase in homes entering contract. While Queens experienced a decline in inventory, new contracts in the borough increased, leading to a rise in the median asking price. As the market continues to shift, buyers must be prepared to act quickly and strategically to secure their desired properties.
FAQs
What caused the increase in homes entering contract?
A decline in mortgage rates, which fell to a two-year low, 6.2%, led to more buyers entering the market.
How did the market balance out?
The increase in new listings ended up balancing out the number of new contracts, with the total number of homes on the market decreasing slightly.
What happened in Queens?
Queens experienced a 3% decrease in inventory, but new contracts increased by 17.9%, leading to a 3.4% rise in the median asking price.
How did co-ops fare in the market?
Co-ops in Queens declined 2.5% in inventory, but those sold did so for 98.4% of their asking price, a 0.5% increase from the same period last year.
