Carroll Gardens is the best NYC neighborhood for sellers, StreetEasy finds

In 2022, NYC sellers and buyers had to adjust to a new reality after US mortgage rates doubled in a matter of months. The increase in borrowing costs put pressure on homebuyers’ budgets and pushed sellers to lower the listing prices. However, sellers in some sought-after NYC neighborhoods seem to be unaffected by the housing market slowdown as they close well above the initial asking price. 

The best NYC neighborhood to sell a home right now is Carroll Gardens. In the last four months of 2022, 50 percent of Carroll Gardens listings sold above the asking price, according to StreetEasy findings. The real estate marketplace compiled a list of the top 10 best NYC neighborhoods for sellers. Carroll Gardens is also the most expensive neighborhood on StreetEasy’s list, with the median asking price of $2.35 million. 

StreetEast’s “Top 10 Seller’s Markets” list includes eight neighborhoods in Brooklyn, two in Queens, and none in Manhattan. The popularity of Brooklyn skyrocketed in the first year of the pandemic as more New Yorkers began to work from home and craved more space. Remote workers who no longer had to commute to Manhattan decided to move to Brooklyn, where they were getting more square feet for less money. However, the rising demand for apartments in Brooklyn led to a surge in prices and bidding wars. 

Now, Brooklyn homebuyers have fewer options to choose from. In Q4 2022, the borough's listing inventory fell 16.4 percent to 5,526 available units. Park Slope, which climbed to second place on StreetEasy’s list of best neighborhoods for sellers, saw a 32 percent year-over-year drop in listing inventory. The share of homes sold above the asking price reached 38 percent in this neighborhood. Boerum Hill grabbed the third spot on StreetEasy's ranking, with 33 percent of listings selling above the initial asking price. 

As mortgage rates remain elevated, New Yorkers begin to look for homes in more affordable neighborhoods. Only four of the ten neighborhoods on StreetEasy’s list have the median asking price below $1 million. East Flatbush, Sunnyside, Canarsie, and Elmhurst offer more budget-friendly options to prospective buyers. However, at least 27 percent of homes listed for sale in these neighborhoods received offers above the asking price.  

“Although higher mortgage rates have reduced the number of buyers who can afford to stay in the market, low inventory across the city suggests sellers can still expect competitive offers – as long as they price their homes in line with comparable listings in local markets,” StreetEasy’s economist, Kenny Lee, said. “Buyers in the top 10 sellers’ markets may find little room to negotiate and run into bidding wars more frequently than in other parts of the city.”

Resources:

“The Best NYC Neighborhoods for Sellers Right Now,” by Kenny Lee (StreetEasy, 2023)

“Park Slope Is Second-Best Neighborhood To Sell A Home, Study Finds,” by Matt Troutman (Patch, 2023)