New Yorkers looking to break free from New York’s notoriously high housing prices may finally have good news.
StreetEasy reports that the New York City real estate market is starting to cool after a year of aggressive price increases sparked by residents returning to New York City as the city reopens from pandemic lockdown. Demand for homes priced under $500,000 is highest as rising mortgage rates increase borrowing costs, but more expensive properties priced above $1.5 million have lower interest rates and fewer contracts being signed. It’s getting less.
This will put downward pressure on prices, according to analysis from real estate sites. The average asking price for new listings dropped 0.08% in July after stagnating in June. Prices likely peaked at a median of about $1 million in May, and while unlikely to drop significantly, they could drop further. Under-contract sales fell for his fourth straight month, with July having him on the market 12 days longer than he did in June.
The same cannot be said for the city’s rental market, which remains in all-time high territory. This month’s Elliman report showed new records for average and median rents in Manhattan, Queens and Brooklyn. After a period of limited supply, apartment inventory is finally rising, according to a recent StreetEasy report. Unfortunately, many of these vacancies have been attributed to expiring pandemic contracts, with discounted residents creating a knock-on effect and pushing up rents even in cheaper neighborhoods. The market may be pushing those considering a purchase.
Want to learn more about real estate market conditions and prices by neighborhood? Check out StreetEasy’s full report.