The number of homes entering contract across New York City increased significantly year over year, thanks in large part to a decline in mortgage rates, according to a report by the real estate listing site StreetEasy.
Over this period, there was a 26.4% increase in homes entering contracts, from 1,326 in September 2023 to 1,676 in September 2024. This marked the most significant jump for the month of September since 2021. There were more new contracts across each week of the month compared to the previous year. The pace at which new homes entered contract increased with each week, going from 349 in the first week of September to 441 in the last week. The recent drop in mortgage rates, which fell to a two-year low, at 6.2%, led to more buyers entering the market.
This also brought more sellers to the market, as they could then better afford their next home. Listings over this period of time increased by 7.1%, from 3,888 in September 2023 to 4,164 in September 2024.
The increase in new listings ended up balancing out the number of new contracts, with the total number of homes on the market decreasing slightly, down 0.2%, from 17,569 in September 2023 to 17,533 in September 2024.
While inventory grew in Manhattan and Brooklyn, Queens experienced a 3% decrease year-over-year, from 3,137 in September 2023 to 3,042 in September 2024. This decline in inventory, along with a strong demand for homes in the borough, led to a 3.4% rise in the median asking price, from $647,970 last year to $670,000 this year. The decline in inventory across Queens was also seen with co-ops there, which fell 2.5%, from 1,261 on the market last year to 1,229 this year.
Despite Queens experiencing a drop in inventory, new contracts across the borough increased significantly. There was a 17.9% increase year-over-year in new contracts, from 296 in September 2023 to 349 in September 2024. However, the limited inventory and growing demand left potential buyers with less negotiating power in terms of the cost of these homes. This was especially true when it came to co-ops, with those sold from July to September 2024 doing so for 98.4% of its most recent asking price, marking a 0.5% increase from the same period of time last year.
