The NYC real estate market continues its cooling tone in June. What we are seeing is a market where buyers become more powerful every month. Luckily the sellers are quick to adjust to the new reality, so the market is still moving at a healthy pace. The Manhattan Median sales price comes in at $1.27mm in May, unchanged from the beginning of 2016 but 7% lower than a year ago. Compared to last month, power shifts more to the buyer side. Initial Offer off Ask now stands at 5.3%, its highest level in the last 12 months, having increased every month since February. Another sign of a buyer’s market is the steady increase of the percentage of buyers that are able to buy with a mortgage contingency. 28% of total condo buyers are able to do that now, versus just 23% a year ago. Another measure that has been increasing every month is inventory, although the total Absorption Rate is still just at 6.9 months, lower than what it was a year ago. It is important to see if inventory continues its climb higher to approach the 8-year long term average.
We have been talking about the luxury end slowing down. Let’s put a face to the tale. According to the Real Deal, “Luxury Contracts Down 15 Percent During Q2: Olshan”,from a year ago, the total volume of units priced at 4mm and up decreased 15%, marketing time increased by 24% to 274 days and the average discount from asking increased to 7% from 4%. However, the average sales price jumped 6% to 8.2mm.