NYC Housing Market: Prices, Trends & Forecast 2022-2023

Here are the latest trends in the NYC real estate market as well as the statewide market. A prolonged scarcity of properties on the market across the Empire State, along with high prices and growing mortgage rates, continues to impede the New York housing market in 2022. In September 2022, closed sales fell 12.6 percent from 13,797 units in September 2021 to 12,057 homes last month, a drop of 12.6 percent, according to the New York State Association of REALTORS®

Pending sales declined 11.2 percent, from 12,686 last September to 11,269 in September 2022. New property listings also fell from 16,656 in September 2021 to 14,461 in September 2022. In year-over-year comparisons, this is a 13.2 percent reduction. The median sales price of homes in New York State jumped slightly in September, climbing 2.4 percent from $370,255 in September 2021 to $379,000 this month.

In September 2022, there will be only 39,370 available properties for sale. This marks a 14.4 percent decline from the 45,987 properties on the market in September 2021. A balanced market has a supply of six to six and a half months whereas New York has now 3.3 months. The housing affordability index decreased by 22% to 99 as compared to September of last year when it was 127. An index of 120 means the median household income is 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

NYC Real Estate Market: Are Home Prices Dropping?

The New York resale housing market (statewide data) slowed down in the third quarter of 2022 as increasing inflation and soaring mortgage interest rates finally caught up with most market players. Many buyers looking to purchase a home have lost eligibility for a mortgage or are unable to purchase a home in the present economic situation, resulting in a precipitous decline in buyer interest. The Housing Affordability Index in New York dropped by 25.6% QoQ to 93. A higher number means greater affordability. As borrowing costs continue to rise, many buyers and sellers are choosing to wait while the market resets before making their next move.

• Pending Sales in New York State were down 9.8 percent to 37,292.
• They are considered a forward-looking indicator of home sales based on contract signings
• Closed Sales decreased 10.9 percent to 38,743.
• Inventory shrunk 14.4 percent to 39,370 units.
• Prices gazed upward as the Median Sales Price was up 5 percent to $400,000.
• The average sales price was up 6.2 percent to $530,937.
• Sellers received, on average, 102.5% percent of their original list price at sale, a year-over-year improvement of 0.5 percent.
• Days on the Market decreased by 10.9 percent to 41 days.
• Months Supply of Inventory was down 8.3 percent to 3.3 months.

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Filed under: Headlines by Wendy Jackson
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