NEW YORK, Nov. 21, 2017 /PRNewswire/ -- As the supply
of luxury homes in NYC continued to outpace buyer demand, the
median price of luxury homes sank to its lowest level since
April 2014 in Manhattan and close to its lowest level since
May 2016 in Brooklyn, according to the October 2017 StreetEasy® Market
Reportsi.
In Manhattan, the median resale
price for a luxury home, defined as within the top 20 percent of
the market, dropped 2.0 percent year-over-year in October to
$4,317,377. It fell 3.6 percent in
Brooklyn, to $1,627,904ii. In Queens, the median price for a top-tier home
rose 6.9 percent to $1,036,058iii.
"The onslaught of high-end development in Manhattan and Brooklyn shows no signs of slowing down," said
StreetEasy Senior Economist Grant Long. "Sellers are having a hard
time finding buyers without offering severe price cuts, often to
levels below their original purchase prices. This isn't a new
phenomenon, but with too much luxury inventory already on the
market and even more supply to come, this trend isn't over. The
luxury market in 2018 will continue to favor the buyer, who will
likely encounter increasingly anxious sellers willing to slash
prices as more new construction hits the market."
October 2017 Key Findings -
Manhattan
- Broader resale prices rose in Manhattan as luxury resale prices fell.
Manhattan's median resale price
rose by 2.2 percent to $1,184,362,
while the median luxury resale price fell by 2.0 percent to
$4,317,377. Manhattan's luxury homes also spent 15 more
days on the market for a total of 157 days.
- Rents stagnated across Manhattan; rents fell in Tribeca. Rents in
Manhattan grew 0.4 percent since
last year to a median of $3,164iv. Tribeca's pricey median
asking rent dropped a substantial 25.1 percent since last year
to $5,995.
- Rental discounts reached an all-time high. The share of
Manhattan rentals that offered a
discount reached their highest levels on record: 28 percent of
rental units were discounted, up 3.4 percent year-over-year.
October 2017 Key Findings -
Brooklyn
- Resale prices rose, except in North Brooklyn. The median resale price in
Brooklyn rose 3.4 percent
year-over-year to $751,100.
North Brooklyn, the borough's
second-most expensive submarket, was the only submarket where
prices declined, with the median down 0.9 percent year-over-year to
$1,095,370.
- Luxury resale prices dropped the most of the three
boroughs. Brooklyn luxury
resale prices fell by 3.6 percent to a median of $1,627,904. Luxury homes also spent 11 days
longer on the market than last year – reaching a median of 66
days.
- Brooklyn rents grew
modestly. Median rent rose just 0.7 percent to $2,550, marking the 11th consecutive
month in which rents grew less than 1 percent in Brooklyn.
October 2017 Key Findings –
Queens
- Queens resale prices rose at the fastest rate.
Outpacing Manhattan and Brooklyn,
Queens' median resale price rose
6.8 percent year-over-year to $510,034.
- Prices for the most expensive homes
increased. Unlike Brooklyn and Manhattan, luxury resale prices in
Queens rose 6.9 percent to a
median of $1,036,058, but homes spent
46 more days on the market – reaching a median of 95 days.
- Rents in Queens remain
unchanged from last year. Queens' rents declined just 0.1 percent (or
$2) since last year, reaching a
median of $2,114.
- Rental discounts reached an all-time high. The share of
Queens rentals that offered a
discount reached their highest levels on record: 25 percent of
rental units were discounted (up 5.9 percent year-over-year).
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed at streeteasy.com/blog/market-reports.
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 adds layers of
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, Brooklyn and Queens 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, Brooklyn and
Queens with more than a decade of
history for most metrics. 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, Brooklyn and Queens.
ii The luxury tier cutoff price is derived from the 80th
percentile (the top 20 percent) of recorded sales prices in each
borough during the month. Price tier cutoffs change each period in
order to capture evolving trends in homes that are being sold.
iii Median resale price is measured by the StreetEasy
Price Indices, 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
2007 in Brooklyn and Queens. 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
sale of homes is sourced from the New York City Department of
Finance. Full methodology
here: http://streeteasy.com/blog/methodology-price-and-rent-indices/
iv Similar to the StreetEasy Price Indices, median rents
are measured by the StreetEasy Rent Indices. By including only
valid and verified listings from StreetEasy and employing a repeat
rentals approach, the indices emphasize the changes in rent on
individual properties and not between different sets of properties.
Full methodology
here: http://streeteasy.com/blog/methodology-price-and-rent-indices/
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SOURCE StreetEasy