Zillow New York Housing Site data indicates a stabilization in median home prices in late 2023, with prices hovering around $1.1 million. Inventory levels have increased by 15% compared to the same period in 2022, reflecting a slight shift toward buyer-friendly conditions. Buyer demand remains moderate, driven by higher mortgage rates and economic uncertainty.

The stabilization in New York housing prices is attributed to a combination of external economic pressures and market adjustments. According to Zillow’s Q3 2023 report, the median sale price in New York City decreased by 12% year-over-year to $1.1 million, down from $1.3 million in 2022. This decline aligns with a 15% increase in active listings, reaching 45,000 properties in Q3 2023—a 20% surge from 2022 levels. Higher mortgage rates, averaging 7.25% in late 2023 (up from 3.75% in 2022), have reduced affordability, particularly for first-time buyers. Additionally, remote work trends have impacted demand, with suburban and outer-borough markets seeing a 10% drop in closed sales compared to urban centers. Zillow’s data also highlights a 25% rise in price cuts year-over-year, signaling seller responsiveness to cooling demand. These factors collectively reflect a market recalibrating to macroeconomic challenges, with inventory growth offsetting price declines to stabilize overall conditions.