Listings for Manhattan homes at record high, but sales down steeply: report

1010 WINS Newsroom
August 12, 2020 - 2:52 pm
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NEW YORK (1010 WINS) – Listings for homes in Manhattan are at a record high—but the number of sales is down steeply as buyers wait for deals amid the pandemic, a new report says.

A record 2,714 new listings came onto the Manhattan market in July after the city’s Phase 2 reopening allowed the return of most real estate in late June, according to StreetEasy’s monthly market report.

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The flood of new home listings in Manhattan marks an 87 percent increase from July 2019.

However, 37 percent fewer homes in the borough went into contract compared to last July, according to the report.

Homes that did change hands after off-market negotiations sold for a median of 10 percent, or $117,000, less than the asking price—the largest difference between asking and closing prices ever recorded by StreetEasy.

“COVID-19 has exacerbated the weakness in the Manhattan sales market. If the sellers that have returned to the market are serious about making a sale, they will have to lower their prices accordingly,” StreetEasy Economist Nancy Wu said in the report.

Wu said few sellers are offering steep price cuts right now and that those that do sell are "accepting offers well below their initial asking price."

"Once this reality sets in, asking prices will inevitably begin to mirror what we’re already seeing in off-market negotiations," Wu said.