New York Home Sales Jump In October Despite High Mortgage Rates

The number of homes entering contracts for sale in New York City rose 24% in October from September, defying interest rates at the highest level in more than two decades.

A total of 1,858 homes entered contract last month, according to a report by real-estate website StreeEasy. The number also represents a gain of 8.1% from October 2022.

"More homes tend to enter contract in October than in September as home shoppers return to the market from summer travels," the report, authored by StreetEasy economist Kenny Lee, says. "Surprisingly, the jump in new contracts between October and September this year was not far off from the five-year average of 26.7%, despite mortgage rates rising to a 23-year high."

The median asking price in New York was unchanged at $1.1 million in October, the highest since 2017 and 11% more than a year earlier. StreetEasy says prices are sustained by "resilient buyer demand."

On an annual basis, median asking prices are up in the city's five boroughs. Brooklyn had the biggest increases because of a limited number of homes in the market.

Opportunity to buy

"Rising asking prices across the city, despite elevated mortgage rates, suggest sellers listing their homes continue to feel confident about the market," Lee wrote in the report.

At the national level, pending home sales rose 1.1% in September from August, the National Association of Realtors said on Oct. 26.

The average 30-year fixed mortgage was unchanged at 7.61% in the week ended Nov. 10, the Mortgage Bankers Association said in its weekly survey. In October, the rate was close to 8%, the highest level in 23 years.

StreetEasy said in the report that the fall may be a good opportunity for buyers in the New York City market.

"While inventory is still limited, elevated mortgage rates have kept many buyers on the sidelines and reduced competition for homes on the market. As summer listings continue to linger, sellers may become more willing to negotiate on price to get their home sold ahead of the winter holidays."

For sellers, the website suggests a "competitive pricing strategy."