How to Read a NYC Real Estate Market Analysis Report

Days on Market: What It Really Tells You

Days on market (DOM) measures how long properties take to go under contract. A market with DOM under 30 days is a strong seller's market with limited inventory relative to demand. Over 90 days signals buyer leverage and negotiating room.

But DOM is meaningless without context. A high-end condo in a luxury building may have a 60-day DOM while affordable housing in the same neighborhood moves in 10 days. Always segment by price point and asset type.

List-to-Sale Price Ratio

When the market average is above 100%, buyers are paying over asking price — a clear seller's market signal. Below 95% suggests buyers have negotiating leverage. Watch this metric by neighborhood and price tier, not just city-wide averages.

For investment property, this metric indicates how aggressively you can negotiate versus how much you should expect to compete with other buyers.

Absorption Rate: The Most Underused Metric

Absorption rate measures how quickly available inventory is being purchased. It is calculated as: (Sales per Month) / (Active Listings). A rate above 20% is a seller's market; below 15% favors buyers.

Absorption rate predicts near-term price pressure better than any other single metric. Rising absorption with flat inventory means prices are likely to increase. Falling absorption with growing inventory signals softening ahead.

Cap Rate Trends: The Investor's Primary Signal

For income property investors, tracking cap rate trends by submarket is more valuable than all residential metrics combined. Rising cap rates mean falling prices relative to income — potentially an entry opportunity. Compressing cap rates signal a market where values are increasing faster than income.

Compare current cap rates to 5-year and 10-year historical ranges for your target submarket. Buying when cap rates are above their 10-year average is generally a better entry point than buying at the bottom of the range.