New York City Real Estate

New York real estate: record high again; growth varies; rental in doldrums

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New York has seen another strong quarter.

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Where sees the strongest growth in New York?
Harlem, Downtown Manhattan, and Brooklyn were Q2’s strongest markets for new development sales.

Now let’s look at each of these areas:

Manhattan
Let’s look at how sales have fared in the second quarter of the year. And despite the fact that some indicators show a cooling sales market—there are fewer apartments hitting the market, and the ones that are there tend to sit longer without finding buyers—prices are still hitting new heights.
The number of sales in Manhattan also increased substantially—more than 3,000 were recorded for this quarter.
The big trends are “high sales, record prices, re-sale inventory beginning to slip, and still plenty of bidding wars.”
The median sales price for all new development increased 22.8 percent to $3,306,656.

With average price “luxury”, buyers are more concentrated in “non-luxury” homes
We found that 47.2 percent of condo sales were between $1 million and $3 million—so not in the “luxury” echelon of the market.

Cooling off signs
But still, there are some signs of cooling off—at least at the upper-upper echelon of the market, where the median sale price increased only 3.5 percent to $6,836,269. Listing discounts began rising in the last quarter, which means that luxury sellers are becoming more realistic with pricing. That also led to a drop in the number of luxury apartments on the market—a trend we’ve seen for some time now—as aspirationally-priced listings were allowed to expire.
Rental market in Manhattan has some challenges
The rental market remains soft. So far this summer, the pace at which new leases are signed has not appreciably picked up. It can also be noted that continued closings on condos, bought for investment, ultimately crowd an already glutted, oversupplied rental market. Tenants are still able to negotiate better deals for themselves as landlords acknowledge that a known tenant at a slightly lower rent beats no tenant at all..

Brooklyn
It looks like the cost of buying in Brooklyn is finally getting as terrifyingly high as Manhattan. In the second quarter of 2017, the borough set some serious price records. And this might give pause to the New Yorkers who still remember when Brooklyn was remotely affordable.
The number of sales jumping 50.7 percent and the listing inventory falling 15.5.
The median sales price for a condo was $900,000; for a co-op, it was $423,000; and for single- to three-family homes, it was $1,046,440. The luxury median sales price jumped 32.6 percent to $2,520,168.
The Brooklyn market still has room to grow.
New development taking more share
"This quarter was the season of the new development" for Brooklyn. New development sales jump 127 percent over the same time last year; the median price for those properties rose 25 percent year-over-year to $971,000, as the average price increased 42 percent to $1.37 million. And while both the inventory and closed sales for new developments is on the rise, it’s actually decreasing for co-ops and resale condos.

Queens
Oh yeah, Queens prices are setting a record high, too. The luxury median sales price increased to $1.2 million.
Queens also saw its fastest paced second quarter in a dozen years, with the number of sales surging 47 percent.

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