In all the markets we track—Manhattan, Brooklyn, Westchester, and Miami—the year-over-year trends for June told the same story: Newly signed contracts remained well below the activity totals of 2022, but the rate of decline was the slowest we’ve seen in about a year. The further we get from the boom of the pandemic, the more the housing market is stabilizing.
Month over month in Manhattan, newly signed contracts dipped slightly from May and new listings continued their downward trajectory, keeping inventory tight. In the luxury sector, newly signed contracts for homes asking more than $4 million rose year over year for the first time in more than 12 months. Cash buyers also set a record in the wake of rising mortgage rates, accounting for two-thirds of all closings in the borough during the second quarter.
The numbers fell more sharply month over month in Brooklyn, where the number of new listings decreased at the highest rate of the year. But like Manhattan, luxury contracts had a strong month, with townhouses still at the forefront. A landmark townhouse in Brooklyn Heights asking $8.5 million was the priciest of the 26 contracts signed in the borough from June 19 to June 25. .
While Westchester annual activity followed that of the City, the number of new listings for condos was an outlier with a month-over-month increase. Similarly, the median price for single-family homes and co-ops dipped 0.3 percent and 9.8 percent respectively from May 2022 to May 2023 while the median condo price rose more than 6 percent, indicating a shift in the county.
According to Zillow’s list of hottest housing markets for 2023, the Midwest is heating up, the west coast is cooling down, and Miami is planted firmly at number eight. According to the April 2023 statistics released by the Miami Association of Realtors and the Multiple Listing Service (MLS) systems, the market is leading the nation in real estate appreciation. Despite a decline in overall market activity, the median price of single-family homes and condos have both increased more than 6 percent year-over-year.
South Florida is experiencing a migration of wealth to its shores from both domestic and international buyers. As a result, Miami-Dade County has experienced a surge in luxury home sales of properties priced at $1 million or higher. On the development front, Miami is experiencing a condo boom reminiscent of the early 2000s. The Real Deal reported that 19 condo towers are currently in the works and poised to add about 7,000 total units.
One Miami neighborhood we’re particularly excited about is Wynwood. With its prime location north of downtown next to Edgewater and a vibrant energy as the city’s arts district, Wynwood is attracting residents who want to be at the epicenter of arts, culture, and innovation. The second Saturday of each month, the Wynwood Art Walk is an unmissable iconic display of street performances, art, and incredible food.
No matter which market—hot or not—you’re looking to call home, Zillow says 2023 is a great year to buy because housing costs and bidding wars generally are leveling off.