Oh, the dog days of summer… hot, humid, and notoriously slow– for everyone except the savvy buyer. While most sit on the sidelines, pricing data indicates growing opportunities for buyers as the market adjusts and consolidates from its previous highs.
The percentage of new listings priced below their previous sale prices is on a significant upward trend. This trend has accelerated in 2024, reaching 9.5% by the third quarter. Historically, this is a noteworthy increase from just 1.7% back in Q1 2014.
The trend varies across Manhattan neighborhoods and types of property, but in most cases, we see a pattern where the majority of listings now priced below their previous sale price were originally purchased during market peaks.
For those looking for an opportunity, the data implies that focusing on properties bought between 2015 and 2018, particularly in areas with higher inventory, might yield the best opportunities for finding a new home at a reduced price relative to what it once traded at and could potentially trade at again.
That being said, change is upon us and buyer competition will pick up as we head into what is almost certainly a reversal of rate increases. Currently, mortgage rates have fallen to a 52-week low, and are expected to drop further as we edge closer to the Elections.
In the meantime, enjoy the rest of summer!
