This month, we'll be looking at how the market is doing and what changes may be in store for the future. The West Village has always been a desirable neighborhood, and demand only increases with time. Let's take a closer look at the market trends this month!
As always, the West Village is a highly sought-after neighborhood. The data shows a very healthy market in the seller's favor, and there's insufficient inventory to satisfy the demand. Sellers taking their apartments off the market is further exacerbated by the supply issues we've seen.
Let's dig into the details.
The number of homes for sale increased to 104 units, up from 99 for sales last year. The average price of homes for sale was up 17.2% to 1,447,500.
Pending Sales are currently 88, down 12% from last year and 22.1% from the previous month.
In the Market Pulse in the neighborhood, the ratio between pending and active listings on the market is .85. Down 15.8% from the prior year and 20.6% from last month. Anything below 1 is considered a neutral market.
Pending sales have been down 4.3% since the start of the year. July saw the 2022 peak for pending sales at 113. This trend should reverse in September and rise in October if we see the typical seasonality in the market. It's all tough to predict. There is a lot of uncertainty in the economy, but August is historically slow.
Twenty-six new listings came on the market, up 18% from the year prior.
15 listings went into contract in August, a 31.8% decrease compared to last year.
Currently, 2.9 months of inventory are available; that number is down 19.4% year-over-year.
The median days on the market was 33 for the month, down 39% from last year. That's a blistering pace, and it's continued to trend down from its peak in January 2021.
Thirty-one homes sold in August 1*, with a median discount of .4% from the last asking price.
The assumption was that inventory would increase over time, but sellers have decided to remove their houses from the market.
32.7% of homes sold for more than the asking price last month. 231% higher than the prior year.
Interest rates for a 30-year mortgage are 5.5% compared to 2.87 years ago.
As we move forward, sellers will need to adjust their expectations. With mortgage rates nearly doubling and prices staying the same, buying power is down significantly from last year. In this market, those willing to negotiate have the most success.
Overall, the West Village is still highly desirable. While the market may shift, the neighborhood's popularity will not diminish. September may bring new inventory, but these buying patterns have existed for two years. Even with interest rates increasing, the West Village has remained busy since January 2021.
I’m taking a wait-and-see approach to everything that’s happening. This is an entirely new batch of headwinds, and minimal precedent has been set that I’ve seen.
If you have any questions about the West Village market or want to discuss your real estate goals, please don't hesitate to reach out. I'm always happy to chat!
Thanks for reading, and have a great day!
P.S: Looking for more market reports? Check out my website for monthly updates on neighborhoods all around NYC. Just click the 'Market Reports' tab at the top of the page. Thanks for reading! :)
PSS: All information was compiled from urbandigs.com. They do a fantastic job collecting all this information daily.
Compass
165 Arlington Ave.,
Jersey City, NJ 07305
Michael Baker