Gird yourself for a competitive home-buying season.
Price cuts are, once again, becoming rarer, as home prices are on the upswing amid of lack of inventory, according to a Streeteasy report released Friday.
Thirty-eight percent of Manhattan homes saw price cuts last month, down from a peak of 45 percent in September. In Brooklyn, 26 percent of homes had price cuts, down from a high of 32 percent in September.
“Low inventory and strong demand is the perfect mix for a competitive housing landscape, and that’s what this home shopping season is shaping up to be,” StreetEasy Senior Economist Grant Long said in a statement.
The median price for Manhattan apartments (excluding new development) rose about 1 percent over the past year, to $990,142, and inventory dropped about 7 percent.
In Brooklyn, the median rose about 5 percent to $569,429. While inventory was up about 2 percent overall, it fell nearly 20 percent in Northwest Brooklyn areas like Greenpoint and Williamsburg and was down more than 7 percent in the neighborhoods around Prospect Park.
Lower priced areas in both boroughs saw the biggest price increases.
Upper Manhattan prices rose nearly 8 percent to $673,874 while the median in East Brooklyn jumped nearly 11 percent to $492,688, Streeteasy found.
“Buyers shopping in areas where homes are still relatively affordable, such as Upper Manhattan and East Brooklyn, should be prepared to move quickly on a home when they find the right fit,” Long said.
He expected price growth in both boroughs, however, to remain in check.
“Even though prices are on the rise, growth is still much slower than in years past and may level off in coming months,” he said. “The skyline is filled with cranes. More homes will be coming on the market, which will likely ease price appreciation, bringing some relief to prospective buyers, especially those interested in higher price points.”