Inventory Constraints Influence Slow Sales
Contract activity fell 34% versus a year ago and 15% compared to the previous month. April marked the twelfth consecutive month where sales fell by double-digits annually. Year-over-year double-digit sales declines occurred within all price categories, with sales over $3M dropping the most at 72% below a record high April. The under $1M price segment declined 23% but continued to comprise the largest share of sales in the market with more than half of overall transactions.
Days on market increased just 3% year-over-year. Co-ops in particular sat on the market 13% longer than a year ago at nearly three months while condo days on market actually declined.
Limited Inventory Pushes Negotiability Factor Above Last Ask
Inventory decreased 3% year-over-year but increased the same percentage month-over-month, a typical Spring season trend. Condominium listings drove the overall decline with an 8% decrease in inventory while co-op listings increased 6% annually. Overall average price per square foot fell 10% compared to April 2022. The decline can be attributed to an increased share of sales in South Brooklyn.
April 2023 had the greatest share of sales in South Brooklyn in the last five years. This trend contributed to a decline for both condominium and co-op average price per square foot, which fell 4% and 6%, respectively. 56% of deals sold below ask. This was only the third time since February 2021 that more than 50% of sales signed below ask.
However, 21% of deals traded for more than the last asking price, largely in neighborhoods with higher prices like Williamsburg and Park Slope, pushing overall average negotiability just slightly above the last asking price