Expanding Inventory + Lower Prices = Boost in April Activity
Nearly 1,200 apartments were sold in the month of May, down 10% annually, but level with the ten-year historical average pace of sales for May. Both condo and co-op sales were lower than last year but, notably, the market wide annual decline was the smallest seen in the past year.
The remarkable 24% boost in activity versus April delivered a positive sentiment across the market as sale declines have occurred between April and May during eight of the past ten years. The market was just beginning to react to higher interest rates this time last year which explains the diverging trends in sales year-over-year by price range.
Sales under $2M declined 16% versus May 2022 while sales over $2M were above last year by 8% as the luxury market continues to be less impacted by higher interest rates. In fact, the number of sales over $5M (98) was the best month since March 2022. Meanwhile, expanding inventory and slower sales drove days on market higher compared to last year’s low.
Average Price Per Square Foot Softens and Negotiability Grows Deeper
Over 7,400 listings were available in May, the second highest figure since June 2021. The co-op market as condo listings were down slightly year-over-year. Furthermore, the inventory figure was 14% higher than the ten-year historical inventory average for May of 6,500 listings.
The average price per square foot was $1,847, essentially flat year-over-year. Price per square foot has declined annually during six of the past eight months and is down 8% versus the recent peak in November 2021.
Discounts off last asking price averaged 5.6%, 4% deeper than last year and skewed by numerous sales over $5M that sold for more than 10% off. In May, 71% of sales sold below their last asking price versus 57% one year ago.