Key Takeaways:
- NYC buyers can find the most homes for sale in May and October, but for the greatest number of new listings, buyers should look in April.
- Sellers are most likely to reduce asking prices in October, followed by May.
- Buyers will find the most competition in March and the least competition in October, but ultimately, working with the right buyer’s agent is key to making a successful offer.
After a challenging spring home shopping season marked by an inventory shortage and high mortgage rates, sellers are returning to the market and mortgage rates have been gradually declining — signaling better times ahead for New York City buyers. But after several years of persistently high interest rates and asking prices, buyers have grown patient on the sidelines and may now be wondering: “Is it the right time to buy?”
StreetEasy® used our expansive historical data on the NYC real estate market to determine the months when buyers may be most likely to find the most options, the most price cuts, and the softest competition. Ultimately, however, the best time to purchase is when a buyer is financially prepared and has found their ideal home — and having the right agent by their side can help make any time the right time.
Manhattan Homes Under $1M on StreetEasy Article continues below
Best Time for New Listings
The month with the highest number of new listings varies depending on changes in mortgage rates, but general seasonality dictates that spring is when sellers are most likely to list their homes for sale, giving buyers the most options.
In 2024, the number of new listings peaked in April, as high but stable mortgage rates brought the sales market back to a more “normal” seasonality similar to pre-pandemic. However, due to fluctuating mortgage rates over the last two years, 2022 and 2023 saw the most new listings in March. In those years, sellers acted earlier in the year in reaction to sudden drops in rates after sharp increases in the preceding months.
As new listings pile up in the market over spring, buyers can usually find the most options (highest total inventory) as summer approaches in May. With summer vacations ahead, and perhaps after several months of waiting for their listings to sell, sellers may also be more likely to make a deal during this time. However, all is not lost for those who miss the spring selling season: second to May, buyers are likely to see the most inventory in October as sellers rejoin the market after summer.
Best Time for Price Cuts
After several years of record-setting median asking prices, it’s no surprise that many NYC buyers are looking for a deal. With elevated asking prices and mortgage rates over the past few years, slightly more sellers than usual have made price cuts to their listings, adjusting to cooling competition among buyers due to affordability struggles. In 2024 so far, the current median sale-to-list price ratio sits at 95.9%, meaning buyers typically paid 4.1% below the seller’s initial asking price. But aside from these negotiations, 10.7% of sellers cut their asking prices proactively in any given month this year on average.
Sellers tend to reduce prices in hopes of seeing increased buyer interest, as their listings accrue more days on market near the end of the spring and fall buying seasons. With holidays and a slow winter season looming, buyers looking for a deal are most likely to see price cuts in October. Last year, nearly three out of every 20 listings reduced asking prices during October.
Following October, May is a close second for the most popular month for price cuts. New Yorkers tend to set off on summer vacations outside the city after Memorial Day, and rather than letting their listings sit on the market with a dearth of buyers until fall, they’re often more inclined to strike a deal during this month. Plus, families with school-aged children may be more eager to make a move before school begins again in fall.
Worst Time for Competition
Should mortgage rates continue to decline this fall as anticipated, more homes will be within reach for buyers who have been sitting on the sidelines. As affordability improves, the upcoming fall buying season may be busier than usual. But generally, buyers are likely to find the most competition on the market in March.
Following the year-end holidays, with the optimism of a fresh start in the new year, many buyers jump into action by searching for homes in January. However, listings are often sparser this time of year, as it takes time for sellers to catch up and prepare their homes for listing. As a result, January through March is when competition among buyers is hottest, and the number of searches for homes for sale on StreetEasy is at its highest.
Brooklyn Homes Under $1M on StreetEasy Article continues below
Meanwhile, October through December is generally when competition from other buyers is lowest. Searches in January through March were 23% higher than those in October through December on average over the past three years. With fewer buyers on the market in late fall and winter, the sellers who remain may be more inclined to negotiate with interested buyers.
Tips for Buyers
Figuring out the right time to buy is ultimately a personal decision. It comes down to when you’re financially ready and when you find the home that’s right for you.
“There really is no ‘right time to buy,’” says StreetEasy Senior Economist Kenny Lee. “It’s difficult to perfectly predict where mortgage rates or asking prices may be going, and buying a home is more than an investment. Buyers need to consider their current personal financial situation and what their life could look like over the next five to ten years. However, having an understanding of market dynamics and seasonality, and partnering with a top-notch agent, can help buyers who are ready to understand the market’s nuances and perhaps get a leg up.”
Queens Homes Under $1M on StreetEasy Article continues below
Working with an experienced buyer’s agent who can help navigate the changing market is essential. Skilled agents can help buyers understand what they can afford considering their budget and various closing costs. With deep knowledge of the local market, they can help make any time the “right” time by balancing getting a great deal with submitting an offer that will be successful.
Choosing the right agent can often be the determining factor between becoming a successful buyer or remaining on the sidelines for another year. Prospective buyers can connect with the StreetEasy Concierge to get matched with a buyer’s agent who’s had success helping other buyers purchase similar homes.
StreetEasy is an assumed name of Zillow, Inc. which has a real estate brokerage license in all 50 states and D.C. See real estate licenses. StreetEasy does not intend to interfere with any agency agreement you may have with a real estate professional or solicit your business if you are already under contract to purchase or sell property. All data for uncited sources in this presentation has been sourced from Zillow data. Copyright © 2024 by Zillow, Inc. and/or its affiliates. All rights reserved.
