StreetEasy’s latest Manhattan and Brooklyn Market Reports show a double-digit drop in sales inventory in April, setting summer up to be a competitive shopping season for buyers.
“Ongoing job growth and more confidence among first-time buyers has boosted demand for homes, particularly in more affordable areas of the city,” said StreetEasy Senior Economist Grant Long. “Echoing a nationwide trend, low inventory in Manhattan and Brooklyn will continue as the New York City economy remains strong, and will likely push prices higher heading into the summer.”
“For renters, this summer will be one of the most favorable shopping environments that we’ve seen in years,” said Long. “Increased demand in the summer months will put some upward pressure on rents, but landlords will likely continue to offer concessions, particularly in areas with large amounts of new units, such as Downtown Brooklyn and the Financial District.”
See below for additional sales and rental market trends across the two boroughs.
Key Findings – Manhattan
- Manhattan resale prices hit another record high. The Manhattan median resale price increased 1.3 percent year-over-year to $993,592[i].
- As prices rose, inventory declined. There were 11 percent fewer homes for sale in Manhattan than in April 2016[ii].
- Lower-priced inventory fell the most in Manhattan. Sales inventory fell the most in Upper Manhattan, the least expensive Manhattan submarket, with 25 percent less homes on the market than last year.
- Manhattan rent prices continue to decline. Manhattan’s median rent price decreased 1.1 percent to $3,232 compared to last year and has dropped steadily since last fall[iii].
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Key Findings – Brooklyn
- Brooklyn resale prices hit another record high. The median resale price continued to increase, rising 6.3 percent year-over-year to $584,121.
- Prices rose the most in more affordable submarkets. In South Brooklyn, the median resale price rose 9 percent to $441,570. In East Brooklyn, the median resale price rose 5.5 percent to $480,366.
- Prospect Park and Northwest Brooklyn buyers will have the fewest homes to choose from. There were 24 percent fewer homes for sale in both submarkets relative to April 2016.
- Brooklyn rents declined for eight consecutive months. Brooklyn’s median rent price fell 3.7 percent year-over-year to $2,785.
- Market Overview :
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[i] 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 2005 in Brooklyn. 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 sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
[ii] Sale inventory data is based on sales listings of condos, co-ops, townhouses and single-family homes available on StreetEasy.
[iii] 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-streeteasy-rent-indices/