New York City has never had so many homes for sale

Weak home sales in the third quarter saw a record number of homes for sale in New York City.

The stats from Zillow-owned home marketplace StreetEasy reveals inventory reached a record high in Brooklyn and Queens and jumped to near-highs in Manhattan in Q3 2019.

However, sellers are reluctant to deviate from their listing price with the share of homes with a price cut remaining the same of a year earlier despite the soaring inventory.

In Manhattan, the share of homes listed with a price cut (23.7%) was at its lowest for the year while in Brooklyn it rose just one percentage point to 22.3%, with Queens remaining about the same at 19.3%.

The size of the cuts also remained similar to a year ago – 5.3% for Manhattan, 5.15% for Brooklyn and 4.3% for Queens.

"Most sellers are still refusing to bow to the buckling market, causing would-be buyers to turn to the rental market, where they are finding a lot to like," says StreetEasy Senior Economist Grant Long. "Until sellers recognize that prices are not what they once were, those with the means to buy will continue to play the waiting game from the comfort of their rental. With job growth in the city continuing to support demand for homes, we expect to see an unusually competitive winter in the rental market, including likely record rates of rent growth."

The StreetEasy Price Index shows that growth is flagging.

For Manhattan, the index fell 4.4% to $1,039,562, its lowest in 4 years. There was little movement for Brooklyn and Queens. The data shows that those sellers with more realistic expectations found buyers.

Key Findings — Manhattan

• A smaller share of homes received price cuts. While unchanged on an annual basis, the share of price cuts was the lowest in 2019 at 23.7%. The share of price cuts fell most in the Upper West Side down 4.1 percentage points to 22.8%.
• Prices dropped to 2015 levels. The StreetEasy Manhattan Price Index dropped to $1,093,562, a 4.4% decrease from last year. Prices fell the most on the Upper East Side — down 4.8% to $955,277.
• Sellers refused to offer larger discounts. The median price cut on homes in Manhattan was 5.3% of the asking price — unchanged since last year in all Manhattan submarkets.
• There were 915 more homes on the market. For-sale inventory increased 7.7% in Manhattan from a year prior, pushing the total number of homes for sale to just under 13,000.
• Rents rose at their fastest pace since 2015. The StreetEasy Manhattan Rent Index rose to an all-time high of $3,318 – up 3.0% from last year.

Key Findings — Brooklyn

• Price cuts on Northwest Brooklyn homes diminished. Boroughwide, the share of price cuts remained about the same. However, in Northwest Brooklyn, one of the borough's most expensive submarkets, the share of price cuts fell 3.1 percentage points to 17.2%.
• Prices remained the same. The StreetEasy Brooklyn Price Index remained stagnant at $699,813. In Northwest Brooklyn, prices fell 3.2% to $1,054,950.
• The median price cut remained unchanged year-over-year. Brooklyn sellers offered a median of 5.1% off their asking prices.
• Inventory reached an all-time high. Sales inventory increased the most in Brooklyn out of the three boroughs analyzed — up 12.4% from last year to 8,170 homes.
• Rents rose at the fastest rate in the city. The StreetEasy Brooklyn Rent Index jumped 3.9% from last year to $2,712 — the fastest rate in the city and the fastest in the borough since 2015.

Key Findings — Queens

• Sellers offered the fewest price cuts. The share of price cuts offered by sellers was the same as last year at 19.3%, the lowest of all boroughs analyzed.
• Price growth slowed to 2013 levels. Prices in the borough remained stagnant at $510,499 — but overall price growth was the slowest in six years.
• Sellers offered the smallest discounts. Queens sellers cut a median of 4.3% from their asking prices, a level unchanged from last year.
• Sales inventory jumped to a record high. The number of for-sale homes increased 11.2% in the borough to an all-time high. In Northeast Queens, inventory rose 19.9%, the most in the borough.
• Rents reached record highs. The StreetEasy Queens Rent Index increased 3.3% to $2,200, the most significant jump in rents in the borough since 2016.