Home shoppers, particularly first-time buyers and those on a lower budget, continue to face stiff competition for less expensive homes during summer’s busy home shopping season, according to the May 2017 StreetEasy® Market Reports[i].
“New York City housing is increasingly becoming a story of two very different markets,” said StreetEasy Senior Economist Grant Long. “Luxury residential developers continue to remake the Manhattan skyline, but the market demand for units in these buildings has struggled to keep pace with supply. As the luxury market continues to cool, housing in more affordable areas of the city is experiencing just the opposite. While high demand for affordable housing options exists year-round, it is felt even more acutely now during the height of summer home shopping season.”
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 $1,001,114[ii].
- Lowest-priced homes saw prices rise the most. Homes in the bottom end of the market saw an 11.8 percent price increase year-over-year, while luxury market prices dropped 3.4 percent year-over-year.
- These same homes spent less time on the market. Manhattan’s lowest-priced homes spent a median 21 days less on the market than they did last month.
- Cuts to sales listing prices were few and far between. 11.6 percent fewer homes offered discounts compared to this time last year. In the lower-priced segment, less than 1 percent of homes offered a discount in May.
- Manhattan rents continue to cool. Manhattan’s median rent price decreased 1.3 percent to $3,246 compared to last year and has dropped steadily since last fall[iii].
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Key Findings – Brooklyn
- Brooklyn resale prices continue to rise. The median resale price increased by 4 percent year-over-year to $575,574.
- These rising prices hit the lowest-priced homes hardest. The median resale price for Brooklyn’s lowest-priced homes increased 3 percent year-over-year, while prices for homes in the luxury segment decreased 5.4 percent.
- Like Manhattan, price cuts in Brooklyn were down. 9.6 percent fewer Brooklyn homes offered a discount compared to this time last year. Many of Brooklyn’s price cuts were made on homes in the high-end market: 9.8 percent of luxury home listings offered a discount.
- Brooklyn rents remained low compared to 2016. Brooklyn’s median rent price fell 1.8 percent year-over-year to $2,837.
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[i] The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn 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 and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.
[ii] 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/
[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/