NEW YORK, Jan. 29, 2015 /PRNewswire/ --
Key facts for Q4 2015:
- Manhattan's median resale
price rose 7.1 percent from last year to $1,002,008, a record high and the first time in
history that it exceeded $1 million,
according to the StreetEasy Price Index.
- Brooklyn median resale price
reached a record high, soaring 8.3 percent above last year's level
to $537,193.
- Median rent stayed at or near record highs, with Manhattan median rent increasing 4.7 percent
from last year to $3,112. Median
rents in Brooklyn grew 2.1 percent
from last year to $2,630.
- Manhattan and Brooklyn resale prices are forecasted to
increase 0.8 percent and 4.2 percent over the next 12 months,
respectively, both a fraction of their 2015 growth. Record high
prices will weigh on buyers and increased supply in the luxury
segment will dampen price growth in 2016.
The winter chill had little impact on the Manhattan and Brooklyn sales and rentals markets, as resale
and rental prices in Manhattan and
Brooklyn continued to climb in the
fourth quarter. According to the Q4 2015 StreetEasy® Market
Reportsi, Manhattan's
median resale price grew 7.1 percent from last year to $1,002,008, marking a record high and breaking
$1 million for the first time in
historyii. Brooklyn's
median resale price also reached a record high, soaring 8.3 percent
above last year's level to $537,193.
The Upper Manhattan submarket continued to see significant price
increases in the fourth quarter, reflecting the high level of
competition mounting above 110th Street as buyers expand
their search for relative value. The median resale price in Upper
Manhattan increased at double the pace of Manhattan (14.6 percent year-over-year) to
$641,882. In Brooklyn, prices grew the most in East
Brooklyn, where the median resale price grew 18.1 percent to
$464,285.
Rent prices in Manhattan and
Brooklyn also continued to rise.
According to the StreetEasy Rent Indicesiii, median rent
increased 4.7 percent in Manhattan
to a record high of $3,112, and 2.1
percent to a near record high of $2,630 in Brooklyn.
A key factor fueling higher prices is the lack of inventory on
the market, intensifying market competitiveness. In Manhattan, sales inventory sunk 14.4 percent
from Q3 and remained 3.5 percent below last year's level. In
Brooklyn, sales inventory
decreased 13.2 percent from Q3 and only recorded a 1.5 percent
increase year-over-year.
Despite the continued upward momentum recorded at the end of
2015, there are signs of an impending slow-down, suggesting that
we've reached the end of the surge seen over the past two
years.
The Manhattan median resale
price is forecasted to grow by 0.8 percent over the next 12 months
to $1,010,243, according to the
StreetEasy Price Forecastiv, a significant reduction
from the 7.1 percent growth over the previous 12 months. The
last time Manhattan saw annual
price appreciation at or below 0.8 percent was February 2012. Slower price growth is also
expected in Brooklyn. The median
resale price in Brooklyn is
forecasted to grow by 4.2 percent over the next 12 months to
$560,005, just half the growth rate
of 2015. The last time Brooklyn
saw annual price appreciation at or below 4.2 percent was
October 2012.
"For the Manhattan and
Brooklyn sales markets, 2016 will
look more like 2012 and less like 2014," says StreetEasy data
scientist Alan Lightfeldt. "The spike in global and investor demand
in 2014 appears to have been fully served. There are even signs of
oversupply within Manhattan's
luxury market, which has experienced consecutive price declines
since early 2015. These are markets that are returning to
sustainable growth rates after the party of 2014: expect lower
price appreciation in both Manhattan and Brooklyn in 2016."
The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis,
neighborhood data and graphics can be viewed at
streeteasy.com/blog/market-reports.
|
Submarket
Name
|
Dec. 2015
StreetEasy
Price Index
|
Annual
Change
|
Dec. 2015
StreetEasy
Rent Index
|
Annual
Change
|
|
Manhattan
|
$1,002,008
|
7.1%
|
$3,112
|
4.7%
|
|
Downtown
|
$1,236,756
|
6.1%
|
$3,599
|
3.9%
|
|
Midtown
|
$865,342
|
4.5%
|
$3,307
|
4.4%
|
|
Upper West
Side
|
$1,087,250
|
8.1%
|
$3,150
|
5.2%
|
|
Upper East
Side
|
$1,025,749
|
9.1%
|
$2,705
|
5.2%
|
|
Upper
Manhattan
|
$641,882
|
14.6%
|
$2,331
|
6.6%
|
|
Brooklyn
|
$537,193
|
8.3%
|
$2,630
|
2.1%
|
|
North
Brooklyn
|
$924,181
|
8.3%
|
$3,138
|
3.1%
|
|
Northwest
Brooklyn
|
$810,109
|
8.2%
|
$3,048
|
2.9%
|
|
Prospect
Park
|
$779,679
|
7.1%
|
$2,815
|
4.7%
|
|
South
Brooklyn
|
$394,554
|
8.8%
|
$1,595
|
-1.2%
|
|
East
Brooklyn
|
$464,285
|
18.1%
|
$2,578
|
1.6%
|
About StreetEasy:
StreetEasy is New York City's leading local real estate
marketplace on mobile and the Web, providing accurate and
comprehensive for-sale and for-rent listings from hundreds of real
estate brokerages throughout New York
City and the major NYC
metropolitan area.
StreetEasy goes deeper than any other source, offering
New York-specific information with
proprietary data and useful search tools to help home shoppers and
real estate professionals navigate the complex real estate markets
within the five boroughs of New York
City, as well as Northern New
Jersey and the Hamptons.
Launched in 2006, StreetEasy is based in the Flatiron
neighborhood of Manhattan.
StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and
ZG).
StreetEasy is a registered trademark of Zillow, Inc.
i The StreetEasy Market Reports are a monthly
overview of the Manhattan and
Brooklyn sales and rental markets.
Every three months, a quarterly analysis is published. The report
data is aggregated from public recorded sales and listings data
from real estate brokerages that provide comprehensive coverage of
Manhattan and Brooklyn, with most metrics dating back to
1995 in Manhattan and 2005 in
Brooklyn. The reports are compiled
by the StreetEasy Research team. For more information, visit
http://streeteasy.com/blog/market-reports/. StreetEasy tracks data
for all five boroughs within New York
City, but currently only produces reports for Manhattan and Brooklyn.
ii Median resale prices are measured by the StreetEasy
Price Indices. Also referred to as the StreetEasy Manhattan Price
Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics
are monthly indices that track changes in resale prices of condo,
co-op, and townhouse units. Each index uses a repeat-sales method
of comparing the sales prices of the same properties since
January 1995 in Manhattan and January
2005 in Brooklyn. Given
this methodology, each Index accurately captures the change in home
prices by controlling for the varying composition of homes sold in
a given month. Data on sales of homes is sourced from the New York
City Department of Finance. Full methodology here:
http://streeteasy.com/blog/methodology-streeteasy-price-indices/
iii The StreetEasy Rent Indices, or the Manhattan Rent
Index and the Brooklyn Rent Index, are monthly indices that track
changes in median rents of condo, co-op and townhouse units. Each
index uses a repeat-sales methodology using rentals listings on
StreetEasy, comparing the rent price of the same properties across
several years. Full methodology
here: http://streeteasy.com/blog/methodology-streeteasy-rent-indices/
iv The Manhattan Price Forecast and the Brooklyn Price
Forecast predict the change in resale prices one month out from the
current reported period. Each forecast incorporates the Price Index
for each borough, StreetEasy's comprehensive database of listing
prices and days on market - two leading indicators to future resale
prices to accurately forecast what next month's resale prices will
be before the release of publicly recorded sales data.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/manhattan-and-brooklyn-prices-end-2015-at-record-highs-300211774.html
SOURCE StreetEasy