Many sellers across New York City cut prices on their homes this February as winter brought a chill to the sales market. In Manhattan, more than 1 in 10 homes had their prices cut, and inventory increased by 11.7 percent from last year. With inventory levels and the share of price cuts high across the borough, prices cooled, too. The StreetEasy Manhattan Price Index [i] dropped 4.3 percent to $1,119,183, its lowest level since July 2015.
Even with prices down and an abundance of inventory, buyers continued to hesitate to make deals. Manhattan homes spent a median of 117 days on the market — up 27 days year-over-year, and the highest level in seven years. This trend appeared in all areas and price points across the borough. Downtown Manhattan [ii] saw the largest increase in median days on market — up 31 from last year, to 117 days total.
“With a strong economy and home-shopping season right around the corner, plenty of New Yorkers are well-positioned to buy this spring. However, many are willing to walk away from deals that just aren’t financially attractive and continue renting instead — creating a market poised to punish sellers who don’t price their homes sensibly,” says StreetEasy Senior Economist Grant Long. “When the inevitable wave of new inventory hits the market this spring, interested buyers should expect to see an uptick in price cuts as the market forces ambitious sellers to accept reality.”