Inventory Constraints Impact Slow Sales
Contract activity fell 36% versus a year ago. January marked the eleventh consecutive month where sales fell by double-digits annually. However, compared to January 2023 sale increased nearly 60%, far more than the typical increase from February to January, which is 25%.
Year-over-year double-digit sales declines occurred within all price categories, with sales from $1.5M to $2M dropping the most at 64%. Inventory reached its third lowest point since April 2020. However, days on market increased slightly year-over-year due to lingering listings finally selling.
Continually Low Inventory Bolsters Strong Price Per Square Foot
Inventory slid 3% year-over-year but increased 3% month-over-month. Co-op listings declined at a greater rate than condominiums, down 5% annually. Though overall average price per square foot fell 6% compared to February 2022, when the metric reached its highest point on record, the average is still historically high.
Co-op average price per square foot fell 27% year-over-year, due to an uptick in South Brooklyn sales below $400 per square foot. Condominium price per square foot decreased just 1% from February 2022, when the product type reached its fourth highest point on record.
46% of deals sold below ask, the second lowest percentage in the last six months, pushing overall negotiability just slightly below the last asking price. However, 25% of deals traded for more than the last asking price, largely in northwest neighborhoods like Williamsburg, Park Slope, or Brooklyn Heights.
