Spring in New York typically brings a busy home buying season – but by May 2022, it does not appear that many locals had the usual spring in their stride.
The latest report from Douglas Elliman shows that activity in Manhattan and Brooklyn slowed due to stock shortages and rising mortgage rates. (The report is wide-ranging, including data from Long Island, Westchester and parts of Connecticut – but does not include figures from the city’s three other districts.)
In Manhattan, the number of newly signed cooperative contracts fell by 6.9% year-on-year to 671 agreements reached in May from 721 in May 2021. Meanwhile, condominiums achieved only a modest gain of 2% over the same period, rising to 556 contracts from 545 the year before. In terms of single- to three-family houses – including single-family houses – in May 2022 there were a total of 27, or 10 more than in May last year.
Across all three of these property types, trades fell year-on-year to 1,254 from 1,283.
In April, according to a market report from the advertising portal StreetEasy, which uses various measurements, home sales went fast. That month, the average city dweller spent 46 days on sale, 20 days less than in April 2021. It also came with increased prices. In April, the average price of a house in the city rose to $ 995,000 – an increase of almost 5% year-on-year. And in Manhattan alone, a total of 1,525 units were contracted that month, a number that had not been seen since May 2013. At the time, StreetEasy noted, there was good inventory – a total of 19,000 homes for sale in the city, just shy of 2019 -high at 20,735 when the market was slow.
In May, according to Elliman, there were 953 new ads for all three of these housing types, an increase of less than 1% year-over-year from 948 last May.
On the other side of the East River, signed contracts for single-family homes, condominiums and condominiums in Brooklyn fell annually for the first time in three months – although new ads had a small increase of 1.7% to 241 from 237 year-on-year.
Contracts for cooperatives in the Kings district fell 6.3% to 177 from 189, while those for condominiums fell 6% annually to 299 from 318. Even greater is the decline in contracts signed for one- to three-family homes: 13.2% fell to 165 from 190.
“The narrative of ‘low supply is retraining sales’ is now combined with ‘the rise in rates also creates a pull on demand,'” the report’s author, appraiser Jonathan Miller from Miller Samuel told Crain’s. tenders have created. “