NEW YORK, March 21, 2019 /PRNewswire/ -- Many sellers
across the city cut prices on their homes this February as winter
brought a chill to the sales market. In Manhattan, more than one in ten homes had
their prices cut, and inventory increased by 11.7 percent from last
year. With the share of price cuts and inventory levels high across
the borough, prices cooled, too. The StreetEasy Manhattan Price
Indexii dropped 4.3 percent to $1,119,183, its lowest level since July 2015.
Even with prices down and an abundance of inventory buyers
continued to hesitate to make deals. Manhattan homes spent a median of 117 days on
the market — up 27 days year-over-year, and the highest level in
seven years. This trend appeared in all areas and price points
across the borough. Downtown
Manhattaniii saw the largest increase in median
days on market – up 31 from last year, to 117 days total.
"With a strong economy and home-shopping season right around the
corner, plenty of New Yorkers are well-positioned to buy this
spring. However, many are willing to walk away from deals that just
aren't financially attractive and continue renting instead—
creating a market poised to punish sellers who don't price their
homes sensibly," says StreetEasy Senior Economist Grant Long. "When the inevitable wave of
new inventory hits the market this spring, interested buyers should
expect to see an uptick in price cuts as the market forces
ambitious sellers to accept reality."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
February 2019 Key Findings —
Manhattan
- Home prices dropped boroughwide. The StreetEasy
Manhattan Price Index fell 4.3 percent to $1,119,183. Prices dropped in all five
submarkets, with the Upper West Sideiv seeing the most
significant decrease — down 4.4 percent to $1,106,947, its lowest level since June 2015.
- Homes took a month longer to sell. Manhattan homes spent a median of 117 days on
the market - — up 27 days year-over-year. In February, homes in the
Upper East Side submarket spent the most time on market at 123 days
– 25 days longer than last year.
- Sales inventory remained high. The total number of homes
for sale in Manhattan increased
11.7 percent year-over-year. Inventory grew across the borough,
with Upper Manhattanv gaining the largest relative share
of new inventory at 18.4 percent.
- Recorded sales declined. There were 2.2 percent fewer
home salesvi in February in the borough. Sales decreased
in all five submarkets, led by Downtown
Manhattan, where there were 7.9 percent fewer sales.
- More than one in ten homes had their price cut. 11
percent of homes in Manhattan saw
a price cut in February – a slight increase of 0.1 percentage
points year-over-year. Upper Manhattan saw the most significant annual jump
in the share of price cuts – up 1.3 percentage points to 10.3
percent.
- Rents continued to rise. The StreetEasy Manhattan Rent
Indexvii increased 2.5 percent annually, reaching
$3,209. Downtown Manhattan rents reached their highest
level ever — up 2.5 percent to $3,730.
February 2019 Key Findings —
Brooklyn
- Prices remained the same. The StreetEasy Brooklyn Price
Index increased by just 0.6 percent to $713,513. Prices rose across the borough, except
in East Brooklynviii, where they dropped 3.1 percent to
$615,464.
- Sales inventory increased significantly. Inventory in
Brooklyn rose 21.9 percent from
last year. There were some 150 more homes available for sale in
Northwest Brooklynix
this February than last year — a 27.9 percent increase.
- Homes took two weeks longer to sell. The median days on
market increased to 90 days in Brooklyn, up 15 days from last year. Homes in
Prospect Parkx spent over two months longer on the
market — up 70 days to 101 total days.
- There were more price cuts. Borough-wide, the share of
price cuts increased by 4.2 percentage points to 11.6 percent. East
Brooklyn had the largest spike in price cuts compared to last year
– up 5.7 percentage points to 11.8 percent.
- Rents in North Brooklyn
decreased slightly. Despite the cancellation of the L train
shutdown, rents in North
Brooklynxi remained relatively stagnant at
$3,046 — a 0.9 percent decrease from
last year. Boroughwide, the StreetEasy Brooklyn Rent Index was up
1.8 percent to $2,593.
- 1 in 10 rentals advertised concessions. The share of
rentals advertising concessions dropped by 7.1 percentage points
year-over-year, down to 9.7 percent boroughwide.
February 2019 Key Findings —
Queens
- Price growth continued to slow. The StreetEasy Queens
Price Index increased 4.0 percent annually, reaching $523,592. While prices are still increasing in
the borough, growth has slowed compared to the high levels seen in
2018.
- Sales inventory increased the most of any borough.
Queens saw the most significant
jump in sales inventory of the three boroughs tracked — up 26.5
percent year-over-year.
- Homes sold the fastest. Of the three boroughs, homes in
Queens moved off the market the
fastest at a median of 67 days – one day faster than last
year.
- The share of price cuts increased. The share of homes
with a price cut increased to 8.8 percent in the borough – up 3.1
percentage points year-over-year.
- Rents increased steadily. The StreetEasy Queens Rent
Index reached $2,163 — up 2.4 percent
year-over-year. Northwest Queens
had the largest increase in rents, up 2.3 percent to $2,254.
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 https://streeteasy.com/blog/data-dashboard/.
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 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.
ii 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.
iii The Downtown Manhattan submarket includes Civic
Center, Financial District, Tribeca, Stuyvesant Town/PCV, SoHo,
Little Italy, Lower East Side, Chinatown, Battery Park City,
Gramercy Park, Chelsea,
Greenwich Village, East Village,
West Village, Flatiron and Nolita.
iv The Upper West Side submarket includes
Lincoln Square, Upper West Side,
Manhattan Valley and Morningside Heights.
v The Upper Manhattan submarket includes Hudson
Heights, Hamilton Heights, Washington
Heights, Inwood, Fort
George, West Harlem, Central Harlem, East Harlem, Manhattanville,
South Harlem and Marble Hill.
vi Recorded sales are projected for the period
based upon 1) data received from the New York City Department of
Finance through the final day of the period, and 2) historical
seasonal trends.
vii The StreetEasy Rent Indices are monthly indices
that track changes in rent for all housing types and are currently
available from January 2007 in
Manhattan, January 2010 in Brooklyn, and January
2012 in Queens. Each index
uses a repeat-sales method similar that used to calculate the
StreetEasy Price Indices. The repeat method evaluates rental price
growth based on homes in a given geography that have listed for
rent more than once. More details on methodology here.
viii The East Brooklyn submarket includes
Bedford-Stuyvesant, Bushwick, East New York, Crown Heights and
Brownsville.
ix The Northwest Brooklyn submarket includes
Downtown Brooklyn, Fort Greene,
Brooklyn Heights, Boerum Hill, DUMBO, Red
Hook, Gowanus, Carroll Gardens, Cobble Hill, Columbia St.
Waterfront District and Clinton
Hill.
x The Prospect Park submarket includes Park Slope,
Windsor Terrace, Prospect Heights,
Prospect Lefferts Gardens and Prospect Park South.
xi The North Brooklyn submarket includes
Greenpoint, Williamsburg and East Williamsburg.
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SOURCE StreetEasy