NEW YORK, Jan. 23, 2020 /PRNewswire/ -- The price threshold
for Manhattan luxury homes, which
constitute the top 20% of the market, fell to its lowest level
since 2013, according to the Q4 2019 StreetEasy Market
Reportsi. To land in the luxury tier, homes had to be
priced at or above $3,816,835 — a
6.1% drop from the top threshold in the previous year.
This fourth-quarter drop in the luxury threshold shows that many
sellers at the top of the market have finally begun to accept lower
prices in order to stand out amid the growing surplus of high-end
homes. Even as price levels fell in the fourth quarter, luxury
inventory expanded 12.2% over the previous year, with 4,354 homes
for sale above the $3.816M
threshold.
"With so much new construction saturating the Manhattan real estate market, we were bound to
see prices start to sink at record paces," says StreetEasy
Economist Nancy Wu. "This is
happening across all price points and boroughs, as prospective
buyers wait out the market from the comfort of their rentals.
Market dynamics in 2020 will continue to favor the buyer across all
price tiers, and many sellers will have to face the fact that if
they want to sell, it may very well be for less than their initial
asking price."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
Q4 2019 Key Findings — Manhattan
Manhattan's sales market
remained sluggish. Home prices fell 3.7% — the slowest pace of 2019
— to $1,086,217, according to the
StreetEasy Manhattan Price Indexii. Meanwhile, total
sales inventory rose 3%, and homes lingered on the market for 96
days, 10 more than last year. Prospective Manhattan buyers are still in the driver's
seat, with significant negotiating power and a huge inventory of
homes to choose from.
Q4 2019 Key Findings — Brooklyn
Rents in Brooklyn continue to
rise at a record pace.. Boroughwide, the StreetEasy Rent
Indexiii jumped 5.2% annually in the fourth
quarter, its biggest leap in six years. North Brooklyniv led the race
with the highest growth in rents (up 5.9% to $3,238), as the area rebounds from the
long-planned but suddenly canceled L train shutdown.
Q4 2019 Key Findings — Queens
Queens remains a great option
for buyers seeking relative affordability in the city.
Fourth-quarter prices stayed unchanged from a year prior, at
$509,202. Buyers also had more
inventory to choose from than a year earlier, with total inventory
growing 1.2% to 4,308 homes.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed here. Definitions of StreetEasy's metrics
and monthly data from each report can be explored and downloaded
via the StreetEasy 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 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.
iv The North Brooklyn submarket includes
Williamsburg, East Williamsburg and Greenpoint.
Media contact:
Emily McDonald, StreetEasy
press@streeteasy.com
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SOURCE StreetEasy