Month: May 2020

Spring 2020 Manhattan Residential Sales Market Update During Covid-19

Eric Mendelsohn

Here is a snapshot of the current market relating to supply and demand trends during Covid-19 for Manhattan in the Residential Sales Market:

Supply in Manhattan seems to have bottomed out at a little north of 5000 listings.  Since April 18, there have been between 5025 to 5100 listings on the market, which compares to approximately 7500 listings one year ago.

Our best measure of demand is contracts signed. This number has steadily declined to a new weekly low of 36 for the past week. The contracts currently being signed are likely sight unseen in person and due to virtual video tours. This time of the year should be averaging about 250 to 275 contracts signed per week.

 

 

Negotiability in the NYC Residential Sales Market During Covid-19

Eric Mendelsohn

This was taken from the Halstead Open House Index. The data is showing that there are many low offers coming in but very few are being accepted. However, it does give an indication how much negotiating room there is in the current environment.

Since March 22, 2020, based on 105 offers:
 
  1. The average difference between ALL offer prices and ALL ask prices was 13.79%. (105 replies)
  2. The average difference between offer and ask in deals that were ACCEPTED was 6.78% (40 replies)
  3. The average difference between offer and ask in deals that were REJECTED was 18.10% (65 replies)
 
Let’s check each borough:
 
  1. The Bronx – the difference between offer and ask was 4.26%. And no, this is not a trend because we received just one reply from the Bronx area. And it wasn’t accepted.
  2. Brooklyn – the average difference between ALL offers and ALL asks was 9.09% (23 replies)
  3. Brooklyn – the average difference in deals where offer was ACCEPTED was 4.93% (13 replies)
  4. Brooklyn – the average difference in deals where offer was REJECTED was 15.08% (10)
  5. Manhattan – the average difference between ALL offers and ALL asks was 15.59% (76 replies)
  6. Manhattan – the average difference in deals where offer was ACCEPTED was 7.25% (26 replies)
  7. Manhattan – the average difference in deals where offer was REJECTED was 19.92% (50)
  8. Queens – the average difference between offer and ask was 9.82% (6 replies, 5 were NO and 1 was YES)
 
Let’s check by type of property:
 
  1. Single Family/Townhouses – the difference between ALL offers and ALL asks was 14.58% (13 replies)
  2. New Developments – the difference between ALL offers and ALL asks was 11.77% (6 replies received, all were rejected except 1). Guys, this is not a trend, based on just 6 replies. I am sure if we received more data from new developments, that negotiability factor would have been much lower, keep in mind.
  3. Co-ops – the average difference between ALL offers and ALL asks was 12.61% ( 52 replies)
  4. Co-ops – the average difference in deals where offer was ACCEPTED was 6.42% (26 replies)
  5. Co-ops – the average difference in deals where offer was REJECTED was 18.42% (26 replies)
  6. Condos – the average difference between ALL offers and ALL asks was 15.64% (34 replies)
  7. Condos – the average difference in deals where offer was ACCEPTED was 5.04% (7 replies)
  8. Condos – the average difference in deals where offer was REJECTED was 18.29% (27 replies)