Trends & Data

It's Beginning to Look a Lot Like 2012

Slowing growth in sale prices and longer days on the market are the key themes that characterize the Brooklyn and Manhattan real estate markets in July. The sales markets in both boroughs are settling back into a 2012 state, which is much calmer in comparison to the frenzied pace of the past three years. Though prices are still climbing, sellers will need to continue to level expectations amid a less competitive market, while buyers have the opportunity to negotiate asking prices down even further amid slowing price growth and homes spending more time on the market.

See below for more details about key themes from StreetEasy’s July 2016 Market Reports.

Manhattan and Brooklyn Sales Prices See Smallest Increase Since 2012

  • As reported by the StreetEasy Price Index, Manhattan’s median resale price was $994,458 in July 2016, up 2 percent since last year and the slowest pace of price growth since April 2012.
  • Upper Manhattan continued to exceed price growth in all other Manhattan submarkets, with an annual increase of 5.9 percent. The Downtown submarket experienced the slowest growth, increasing 0.6 percent year-over-year.
  • Brooklyn’s median resale price was $563,416 in July 2016, up 4.7 percent since last year and the slowest annual growth since October 2012.
  • Prospect Park was the only submarket with negative growth, down 2 percent since July 2015, while East Brooklyn had the most price growth at 10.7 percent.
  • East Brooklyn continues to dominate price growth in the borough, remaining the only submarket across Manhattan and Brooklyn to experience double-digit annual price growth at 10.7 percent.

 

Homes Take Longer to Sell in July, Providing Buyers With a Bargaining Chip

  • Manhattan homes sold in a median of 62 days, up 13 days from last year.
  • Homes in the Midtown submarket sat on the market the longest in July, going into contract in a median of 68 days, an increase of 10 days from last year.
  • Homes in the Upper West Side submarket moved the fastest at a median of 54 days, an increase of 18 days since last year.
  • Brooklyn homes moved slightly faster, selling in a median of 53 days, up nine days from last year.
  • Northwest Brooklyn sales moved slowly at a median of 58 days.
  • Homes in East Brooklyn went into contract the fastest in a median of 44 days – almost a month faster than this time last year.

 

Brooklyn Sellers Received Larger Share of Asking Prices Than Manhattan Sellers in July

  • In Brooklyn, the median sale-to-list price ratio was 100 percent, meaning Brooklyn sellers typically received all of their initial asking price in July.
  • In Manhattan, sellers received a median of 97.7 percent of their asking price, whereas they received 100 percent in July 2015.
  • Falling prices in the Prospect Park submarket fueled a particularly competitive month for the area, standing out as the only submarket where sellers received more than their asking price in July (102.9 percent).

 

12-Month Outlook:

According to the StreetEasy Price Forecasts, resale price growth in both boroughs will continue to slow over the next 12 months. Price growth in Manhattan is expected to increase 1.3 percent to $1,007,169. Growth will continue to be led by Upper Manhattan with a price increase of 4.1 percent, though Upper Manhattan will remain the borough’s least expensive submarket with a price forecast of $665,998. Sales prices in the Upper West Side submarket are predicted to remain essentially flat over the next 12 months, with a forecast of just 0.1 percent. Brooklyn’s median resale price is expected to increase 3.9 percent to $585,398, led by North Brooklyn at 6.7 percent growth. East Brooklyn is predicted to have the least growth at 0.4 percent, while Prospect Park’s median resale price is expected to grow 2.8 percent.

Jihee Kim

Jihee Kim is a data scientist at StreetEasy. She enjoys finding valuable insights from New York City’s housing data, one of the most unique real estate markets in the country, and hopes to turn on the light in real estate data for New Yorkers. Before joining the StreetEasy Research team, Jihee was a data analyst at Open Learning Initiatives (OLI). She received a master's degree in statistics from Carnegie Mellon University and a bachelor's degree in mathematics from Washington University in St. Louis.

  • searcher

    The latest Zillow data show that the price of studio apartments is falling rapidly for the past half year in most neighborhoods. I am wondering why. Is the market saturated? Are there fewer high-end studios? Anyone have any data that speak to the question?

    • Lauren Riefflin

      Hi Searcher – Thanks for reading, and happy to look into this a little further. Please email press@streeteasy.com and we can discuss in more detail to figure out what data would be the most helpful to address your questions.

      • searcher

        Hi Lauren,
        I guess if we could see the frequency distribution of asking prices for studios we could see if the number of high-end studios had changed. Changes in what is on the market could account for a change in median price. Also, If we could see the median sale-to-list-price ratio for studios we could see if the market for studios was softening.
        Might be interesting to see this for apartments of different sizes. The Zillow data (shown with the “Home Value” tool) for larger apartments does not show the precipitous decline that is evident for studios.
        thanks,
        Searcher

  • comments247

    When is Streeteasy going to acknowledge that the New York City real estate market has five boroughs not two? Aren’t a lot of the more interesting changes taking place in Queens, Staten Island, and the Bronx?