Top Buyers' Markets in NYC
- By Lauren Riefflin November 17, 2016
Inventory remains tight in New York City, while rent and sales prices continue to rise – all conditions that point to a seller’s advantage. To identify neighborhoods where buyers may have more negotiating power or where buyers might face the most headwinds, StreetEasy created the Buyer/Seller Index.
The Buyer/Seller Index is StreetEasy’s analysis of buyers’ and sellers’ markets across New York City. It looks at key indicators of competition such as:
- Time on market
- Price cuts
- Sold price in relation to asking price
Taking each of these factors into account, we looked at how these statistics compare across New York City neighborhoods and determined where sellers have the upper hand and neighborhoods where buyers could benefit from negotiating.
We found that Brooklyn neighborhoods dominated the sellers’ market list, indicating Brooklyn sellers have more of an advantage compared to other parts of the city.
Top Sellers Markets:
|Lower East Side||Manhattan|
On the other end of the spectrum, neighborhoods that favor buyers were more spread out across New York City. Neighborhoods that topped this list were areas where homes/apartments took longer to sell and had more price cuts relative to other neighborhoods.
Top 5 Buyers Markets:
|Kew Gardens Hills||Queens|
Keep in mind that even if you’re looking to buy in a seller’s market, this information should be empowering rather than discouraging. While the market may not be working in your favor, if you have your heart set on a neighborhood that’s highly competitive, preparation is key. Understand what you can afford, get preapproved and work with a buyer’s agent who can help you navigate the market. Then, put your most competitive foot forward once you get to the negotiation table.
How We Did It
To determine NYC neighborhoods where either home buyers or sellers have more negotiating power, StreetEasy created the Buyer/Seller Index. The index combines the sale-to-list price ratio, the percent of homes with a price cut and the number of days homes spent on the market (measured as Days on StreetEasy). Relative to other neighborhoods in NYC, buyers markets are identified as those with a higher index value, driven by more price cuts, homes staying on the market longer, and lower sale-to-list price ratios compared to other neighborhoods in our analysis. Sellers’ markets are those with a lower index value, where homes are less likely to see a price cut, sell more quickly, and have sale-to-list price ratios closer to or exceeding 100, indicating buyers are paying above initial asking prices.