Key Highlights
- Prices falling and inventory rising in Manhattan
- New listings in Brooklyn up and sales prices began slipping in August
Vacancies had been rising and prices falling for renters in both Manhattan and Brooklyn since the COVID pandemic wreaked havoc on the city and essentially closed down the housing market. Now that owners can show their apartments to potential buyers, inventory is beginning to come back.
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According to StreetEasy, the number of for sale homes in Manhattan was down y/y -39.5% in June. Inventory then rose from the ashes in July by jumping +23.1% compared to 2019.
Prices too are falling in Manhattan. Sellers have finally recognized that the tax code changes manifested in the 2017 Tax Cuts and Jobs Act that capped state and local tax deductions at $10,000 and New York state’s recent Mansion Tax affecting properties priced at +$1M have dampened the appetites of potential buyers. The result? Prices are being reduced and the market may be shifting towards buyers.
In Brooklyn, according to the appraisal group Miller Samuel, the number of for sale homes in Brooklyn was down -24.3% in June but then rose to -8% in July compared to 2019. Additionally, the number of new listings jumped again y/y in all price ranges in August. Miller Samuel speculates that if inventory continues to increase in September and October, buyers would then have the upper hand in both Manhattan and Brooklyn.
Home sale prices in Brooklyn are also beginning to come down…not as substantially as in Manhattan but in April, June and July, the median sale price of a home in Brooklyn fell slightly by 3-5%. In May, the median sale price increased +5.8% so it may be too soon to tell where the market in Brooklyn is going until we have price data for August, September and October.
Still, if the Brooklyn sales market follows its rental market where listings are increasing and rent prices are falling, buyers soon may hold the winning hand in both Manhattan and Brooklyn.
Thanks to Curbed, StreetEasy, and Miller Samuel.
Also read: Millennials Piling OUT of Cities, Some Startling Statistics about Small Business Revenues and Payrolls, Most Expensive Zip Codes to Buy and to Rent
