With many buyers balking at higher mortgage rates, listings are sitting on the market for longer in NYC and sellers are increasingly responding by cutting asking prices. However, competition among buyers is still strong in some parts of the city, notably Brooklyn, with frequent bidding wars defying the citywide slowdown in buyer demand.
We ranked the best NYC neighborhoods for sellers by the share of listings sold above their initial asking price in Q4 2022, using StreetEasy listing data and ACRIS sales records. Of all listings sold in these top 10 sellers’ markets, 34% – about one in three – were sold above asking in Q4 2022. That’s double the rest of the city, where 17% sold above asking. With this data taken into account, buyers and sellers can expect bidding wars for some homes in these neighborhoods.
Across the nation, 28% of homes sold above asking in November, the lowest rate since June 2020, according to the latest data from Zillow. By contrast, a record-high share of homes are still being sold above asking in NYC due to citywide inventory shortages and strong competition for pricier homes. 18% of all listings sold in the city were sold above asking in Q4 2022, only slightly below the peak of 23% in Q3 2022.
Compared to the rest of the city, sellers in the top 10 sellers’ neighborhoods can expect more inquiries about their listings and less time on the market. Listings in these areas received 43% more inquiries on average in Q4 2022 compared to the rest of the city. With a median of 58 days on market, a typical listing in these 10 neighborhoods entered contract 24 days faster than listings elsewhere in the city.
Brooklyn Dominates the List, With Fierce Competition Among Larger Budgets
The overall sales market in Brooklyn is slowing, with 35% fewer listings entering contract in Q4 2022 compared to last year. The median days on market was 70 days, up eight days from a year ago. Typical sale prices, tracked by the StreetEasy Price Index, rose 3.2% year-over-year to $708,239 in Q4 after rising 4.2% in Q3.
Homes for Sale in Top Brooklyn Sellers’ Markets Article continues below
However, Brooklyn still crowded the list with eight neighborhoods scoring a spot, as strong demand from buyers with larger budgets fueled competition in the borough. The top third of listings by price point with asking prices at or above $1.35M spent a median of 61 days on market in Q4 2022. Listings below that price spent 12 more days on market, as the impact of higher mortgage rates fell more heavily on buyers with smaller budgets. The average median asking price in these eight neighborhoods in Brooklyn was $1.473M, 50% above the borough median of $980,000 in Q4 2022.
Carroll Gardens, the number one market for sellers on our citywide list, was also the most expensive neighborhood on the list. Its median asking price in Q4 2022 was $2.35M, 140% above the borough median of $980,000. Despite the high prices, 50% of Carroll Gardens listings sold above initial asking, suggesting frequent bidding wars. A typical listing spent just 48 days on the market, 22 days fewer than the borough median of 70 days. Buyers with larger budgets looking for pricier condos and townhouses likely drove up the competition in the neighborhood.
In addition, bidding wars likely intensified due to low inventory. During the pandemic, many home shoppers flocked to Brooklyn looking for green space and local amenities. In early 2022, nine of the top 10 sellers’ neighborhoods were in Brooklyn, as strong demand, partly fueled by low mortgage rates, led to a sharp drawdown in inventory. Now, buyers in Brooklyn have more limited options. In Q4 2022, inventory fell 16.4% year-over-year to 5,526, and the number of new listings entering the market also fell 22.6% year-over-year. In Park Slope and Boerum Hill, second and third on our list, inventory dropped 32% and 41% year-over-year respectively, fueling competition for limited homes on the market.
New Yorkers Are Paying Extra to Secure More Affordable Homes
The median asking price was below $1M in only four out of the 10 top sellers’ markets: East Flatbush, Sunnyside, Canarsie, and Elmhurst. With elevated mortgage rates, affordability is the biggest challenge when it comes to home shoppers’ decisions on where to look. These four neighborhoods offer more affordable homes for shoppers on a budget. East Flatbush, Sunnyside, and Elmhurst also made StreetEasy’s list of 10 NYC Neighborhoods to Watch in 2023, as both renters and buyers prioritized affordability.
East Flatbush, number four on our list, is the most affordable Brooklyn neighborhood on the list. Its median asking price was $699,000 in Q4 2022, 29% below the borough median. 32% of listings in East Flatbush sold above initial asking.
Homes for Sale in Top Queens Sellers’ Markets Article continues below
Buyers looking for affordability in Queens showed willingness to pay a little more. Sunnyside, number five on our list, is the most affordable market on our top 10 list. Sunnyside offers a convenient commute to Manhattan and homes at more affordable prices. The median asking price was $430,000 in Q4 2022, 34% below the borough median of $649,000. Among listings that sold in Sunnyside, 31% received above-asking prices, indicating tough competition.
Elmhurst likely rose in popularity as buyers in the city looked for more affordable options with proximity to subways and highways. The median asking price in this central Queens neighborhood was $530,000 in Q4 2022, 18% below the borough median. 22% of listings that sold in Elmhurst received above-asking prices.
Sellers in These Markets Can Stay Firm on Price
Although higher mortgage rates have reduced the number of buyers who can afford to stay in the market, low inventory across the city suggests sellers can still expect competitive offers – as long as they price their homes in line with comparable listings in local markets. Buyers in the top 10 sellers’ markets may find little room to negotiate and run into bidding wars more frequently than in other parts of the city.
Across all of our current top sellers’ markets, about one in three listings (34%) sold above the seller’s initial asking price, and about one in ten listings (11%) sold at exactly the seller’s initial asking price in Q4 2022. Many NYC buyers were willing to pay the asking price or higher to beat out the competition.
Working with an experienced agent with hyper-local expertise can ensure sellers get the best possible price for their home. StreetEasy can connect sellers with agents in our Experts Network, who have closed deals on properties similar to the seller’s home. In addition, the StreetEasy Concierge for sellers can help sellers learn how to give their listing a competitive edge. Sellers can also take advantage of their Owner Dashboard, including their home valuation estimate, to minimize the time, stress, and guesswork that can come with selling an NYC home.
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