NYC struggles to get rid of overpriced homes

Market report shows highest inventory since financial crisis

NYC Credit:

(NEW YORK, NY) — According to StreetEasy’s Q4 Market Reports, inventory in Manhattan rose 15.4 present year over year, its highest level since 2010.

Last quarter, for the first time ever, homes for sale grew at double-digit rates across all five boroughs.

Homes that were overpriced lingered on the market while home that were fairly priced moved at a quicker pace. Homes that went into contract during the last quarter of 2018 spent an average of 86 days, 9 days more than the previous year.

“The glut of unrealistically priced homes in the city has been a main driver of the slow-moving market that ended 2018 – causing more and more homes to pile up before the new year and heightening competition among sellers,” said StreetEasy Senior Economist Grant Long in a statement. “Heading into 2019, sellers who are unwilling to budge on price are going to face an unforgiving market. Many sellers will have to make difficult pricing decisions in early 2019, particularly with another wave of inventory set to hit the market as the home-buying season heats up in the spring.”

The report shows that the Upper West Side saw 405 recorded sales, the lowers number since the financial crisis. And since buyers are more hesitant, rent rose in all submarkets and saw the biggest increase in Upper Manhattan. In response to rents rising, the share of units offering rental concessions dropped.

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