The NYC real estate market is slow and steady in May. On average, buyers take longer to make a move on a home. The market does not lack buyers. I went to multiple open houses last few Sundays. Every single one had more than 10 parties, with one of them having 30 parties. The latest set of data are still in line with the recent past: Median Sales Price (1.35mm), % Equal or Greater Than Ask (42%), Median Days on Market (52days). However, what is happening is that more buyers realize that the market is becoming a buyer’s market so they negotiate more. The Initial Offer Off Ask increased to 4.24% in April, after staying in the below 3 range since last September.
Inventory has been rising since January, but it is more a reflection of seasonal shifts, as opposed to a solidifying trend pointing to over-supply. The market now has around 7 months’ of supply, the same amount of supply in last April-June. Sellers avoid the winter months to sell, so inventory typically rises in the beginning of the summer. On the other hand, more sellers also realize that the market dynamics have changed and are willing to cut prices to get a deal done. More than half of the life-time views happen within the first few weeks of a new listing. With the buyers having more to choose from nowadays, an unrealistic asking price is the beginning of a long painful road ahead.