A couple of weeks ago, I mentioned that we might soon see an uptick in demand as more buyers enter the market, thanks to the recent drop in inflation and an expected rate cut later this month. According to StreetEasy economist Kenny Lee, the most challenging times for NYC home buyers may be over based on recent data.
In July, there was a 3.1 percent increase in new listings across NYC compared to last year, indicating that rate lock-in is starting to ease for sellers. Signed contracts also surged by 12.5 percent year-over-year, with homes in the $750,000 to $1.7M range moving the fastest—spending an average of just 61 days on the market.
As inventory begins to grow, buyers are likely to have more negotiating power. This increase in available homes, combined with the anticipated rate cut and lower mortgage rates, could make homeownership more accessible for a wider range of buyers.
Notably, condo listings have surpassed co-op listings for the first time since 2019, potentially drawing more buyers to the market due to the flexibility in financing and simpler application processes.
These trends suggest that buyers will have more options in the months leading to and throughout the fall season. Price cuts have become more frequent across the city, likely due to inflated prices earlier this year when the S&P Case-Shiller Index hit a record high, rising 9% year-over-year in June.
Despite these favorable conditions, Lee notes that we’re still not in a full buyer’s market. He expects inventory to rise gradually, meaning buyers may not have the upper hand in negotiations just yet.
If you’re considering taking advantage of these favorable market conditions in the second half of the year, feel free to reach out. I’m happy to meet with you or chat by phone to answer any questions you might have.
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