NEW YORK, July 25, 2018 /PRNewswire/ -- Sales
inventory reached new highs across the city over the last quarter,
leading to a record number of homes offering price cuts in
Manhattan and Brooklyn. The share of homes with a price cut
rose in every submarket across the city, led by the Upper East
Sidei, where one in three homes for sale received a
price cut, according to the Q2 2018 StreetEasy Market
Reportsii.
Amid higher inventory, sales prices started to cool. The
StreetEasy Price Indexiii fell 1.1 percent in
Manhattan to $1,160,419 and stagnated in Brooklyn at $724,733. This drop in Manhattan home prices is the largest
year-over-year decrease since the financial crisisiv.
Queens prices bucked this trend,
increasing 7.3 percent to $530,556 -
the highest level on record.
"The dynamics of the city's real estate market have favored
renting over buying for some time now, though the tide may be
starting to turn," says StreetEasy Senior Economist Grant Long. "New Yorkers with the means for a
down payment now have more options to choose from than at any point
in the past seven years — and this trend isn't just contained at
the high-end, where we've been seeing rising inventory for several
years now. Heading into the fall, buyers are in a strong position
to strike a deal and can afford to shop around, wait for the right
home, and negotiate aggressively."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
Q2 2018 Key Findings — Manhattan
- Inventory reached the highest level since 2011. Sales
inventory in Manhattan increased
15.2 percent since last year. Inventory rose in every Manhattan neighborhood except one: in Hamilton
Heights, it dropped by 11.8 percent from last year.
- The number of homes offering discounts reached an all-time
high. More than one in four homes for sale (28 percent) in
Manhattan received a price cut in
Q2, an increase of 5.3 percent over last year.
- The Upper East Side was the only submarket where prices
rose. Upper East Side home prices increased 3 percent to
$1,058,121. Prices dropped in every
other submarket; in Midtown, they dipped to 2016 levels, falling
3.3 percent from last year to $1,206,268.
- Rents reached an all-time high. Rents rose in all five
Manhattan submarkets, led by Upper
Manhattan, where they increased 3.1 percent to $2,352. Manhattan rents grew 1.5 percent
year-over-year, hitting a record high of $3,212v.
- The number of rentals offering a discount hit its lowest
levels since 2015. 20 percent of Manhattan rentals were discounted in the
second quarter, a decrease of 4.6 percentage points from last
year.
Q2 2018 Key Findings — Brooklyn
- The number of homes for sale hit all-time highs. Sales
inventory in the borough rose 24.4 percent over last year.
Inventory rose in every Brooklyn
submarket except North Brooklyn,
where it fell 3.1 percent.
- Price cuts rose to an all-time high. The share of sales
with a price cut reached an all-time high of 21 percent, up 3.7
percentage points from the second quarter of 2017.
- Prices stagnated across the borough, except for North Brooklyn. The StreetEasy Brooklyn
Price Index dipped 0.5 percent to $724,733. Prices in North Brooklyn reached new highs: up 6 percent
since last year to $1,172,770.
- North Brooklyn homes came
off the market two weeks faster. Homes in North Brooklyn sold after a median of 55 days
— 18 days faster than last year. Across the borough, homes stayed
on the market for a median of 53 days, one day longer than last
year.
- Rents reach an all-time high. The StreetEasy Brooklyn
Rent Index increased 1.4 percent year-over-year to an all-time high
of $2,588. North Brooklyn was the only submarket where
rents stagnated, likely because of the L train shutdown, at
$3,067.
Q2 2018 Key Findings — Queens
- The amount of for-sale inventory rose. Inventory rose 19
percent across the borough, with significant increases across all
five submarkets. South Queens saw
the biggest jump in inventory, up 27.1 percent over the second
quarter of 2017.
- Despite rising prices, price cuts also rose. The share
of Queens homes offering price
cuts rose 17.4 percent, up 5.9 percentage points over last year. In
Northwest Queens, more than one in
four listings had their prices cut, up 11.1 percent since last
year.
- Queens was the only borough
where prices rose. Prices rose 7.3 percent in Queens to $530,556, the highest level on record.
- Homes in South Queens came
off the market nearly two weeks faster. South Queens homes sold 12 days faster than
last year, reaching a median of 50 days on the market.
- Rents remained flat, except in Central Queens. The StreetEasy Queens Rent
Index stagnated at $2,140. Rents in
Central Queens rose 2.3 percent
year-over-year, to a median of $2,083.
- One in five rentals were discounted. 20 percent of
Queens rentals offered discounts,
roughly the same amount as last year. The share of discounted
rentals rose the most in the Rockaways: 16.5 percent were
discounted, up 6.5 percentage points 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/research/market-reports/. Definitions of
StreetEasy's metrics and monthly data from each report can be
downloaded at streeteasy.com/blog/download-data/.
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 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.
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 Upper East Side submarket includes Lenox Hill, Yorkville, Carnegie Hill, Upper Carnegie Hill
and Upper East Side neighborhoods.
ii 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
https://streeteasy.com/blog/research/market-reports/. StreetEasy
tracks data for all five boroughs within New York City, but currently only produces
reports for Manhattan,
Brooklyn and Queens.
iii The StreetEasy Price Indices 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. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the 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 The StreetEasy Manhattan Price Index was down 2.3
percentage points year-over-year in May
2010
v StreetEasy has tracked annual changes in the Manhattan
Rent Index since 2011.
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SOURCE StreetEasy