NYC Housing Inventory Falls, Fueling Fierce Bidding Wars

Competition for New York City homes intensified this summer, with nearly a quarter of properties selling above asking price in August, according to a StreetEasy report cited by The Real Deal.

Shrinking inventory across all three boroughs is driving the trend, with Manhattan supply down 11% year over year. Brooklyn saw the fiercest bidding wars, led by Park Slope.

A Familiar Squeeze

The August figures build on a hot July. That month, 25% of homes sold above asking price. It was the highest share since 2022.

Citywide, about 22% of properties sold above their last asking price in August. That was slightly above the 21% share recorded a year earlier.

“I’ve personally been involved in five highest and best situations this year with buyers, which usually means you have three or more people bidding,” said the Agency’s Mike Fabbri.

He added that the tactic carries risk for sellers, even when it works in their favor.

The Details

Brooklyn posted the highest share of above-asking sales at 32%. Park Slope drove much of that activity.

More than 61% of Park Slope homes sold above asking. That was the highest rate of any city neighborhood.

Manhattan followed at 16% above-asking. Queens came in at more than 24%.

Brooklyn homes also moved fastest. They entered contract in just over two months on average.

Manhattan homes took more than three months. Citywide inventory fell 5% year over year in August.

Manhattan saw the steepest drop at 11%. Brooklyn supply remained relatively steady.

The competition isn’t limited to the entry-level market. The city’s priciest closing this week was a penthouse at 555 West 22nd Street.

The unit traded for $27.5 million. It spans 6,300 square feet and sold as a “white box” with four bedrooms.

The unit is one of 144 apartments at the Cortland. Related Companies developed the property with a design by Robert A.M. Stern.

Sales launched at the Cortland in 2024.

Zooming Out

Douglas Elliman’s Frances Katzen called the trend “a scarcity issue.” She pointed to rising mortgage rates as one factor keeping would-be sellers on the sidelines.

She also cited a shrinking new-development pipeline.

That pipeline squeeze echoes a broader slowdown. New construction activity has cooled across the city.

Demand, however, remains firm.

Why It Matters

“People say ‘inventory crunch,’ but it’s really a shortage of apartments that people actually want to buy,” Fabbri said.

He noted that well-priced homes in good locations draw intense competition as soon as they list.

“It’s a self-perpetuating problem,” Fabbri said. “People who would be selling are holding onto their homes longer because there’s a lack of good product that people want to trade up into.”

The pattern also appears elsewhere in the market. Townhouse prices have climbed alongside rising deal volume.

What’s Next

The scramble for scarce inventory also affects how buyers see listings. Corcoran CEO Pam Liebman has urged agents to pull listings off StreetEasy.

She is offering a $1,000 advertising budget for each listing removed. On a call with agents, Liebman said the firm was spending “$1 million a day” to build alternative marketing support.

Compass International brands under Liebman and CEO Robert Reffkin have since run ads. The ads promote “thousands of homes for sale not on StreetEasy.”

StreetEasy has also updated its Experts program. The changes limit participation from firms that account for a large share of its listings.

Mortgage rates remain elevated. New supply also remains slow to arrive.

As a result, brokers expect scarcity-driven bidding wars to continue into the fall. The fight over where buyers see listings is also likely to continue.