NEW YORK, Aug. 27, 2015 /PRNewswire/ --
Key facts:
- The Manhattan Price Index grew 6.3 percent from last year to a
record high of $983,207, though at a
slower pace compared to 9.5 percent in July
2014.
- The Brooklyn Price Index increased 5.3 percent year-over-year
to a record high of $524,171, less
than half the July 2014 growth rate
of 10.9 percent.
- The median resale price in the Upper Manhattan submarket surged
11.9 percent year-over-year, bucking the Manhattan- and Brooklyn-wide trend of slowing resale price
growth.
- Manhattan inventory declined
5.1 percent from last year, driven principally by a 12.8 percent
drop in co-op units.
- Brooklyn inventory increased
6.3 percent year-over-year, led by a 10.1 percent increase in
townhouse inventory and 19.9 percent increase in condo
inventory.
The median resale price of all Manhattan and Brooklyn homes rose to another record high in
July, though the pace of growth is slowing. Manhattan resale prices of all home types rose
6.3 percent from last year to a record $983,207, as tracked by the Manhattan Price
Index[i]. The Brooklyn Price Index also reached an
all-time high in July, increasing 5.3 percent year-over-year to
$524,171. Last year, prices in
Manhattan and Brooklyn grew by 9.5 and 10.9 percent,
respectively, according to the July
2015 StreetEasy® Market Reports for
Manhattan and Brooklyn[ii].
While borough-wide trends point to easing prices in the resale
market, the Upper Manhattan submarket, including neighborhoods such
as Central, West and East Harlem, Hamilton Heights, and
Inwood, bucked this trend
entirely[iii]. The median resale price in Upper
Manhattan surged 11.9 percent year-over-year to $565,690, the largest annual increase of all
Manhattan and Brooklyn submarkets tracked by the StreetEasy
Price Indices.
"Upper Manhattan has long been an enclave of lower-priced homes,
providing affordable options for buyers that have smaller budgets,
but still want to stay in Manhattan. Now, with home buyers being priced
out of not only Manhattan, but
many Brooklyn neighborhoods as
well, these northern neighborhoods are attractive now more than
ever," said StreetEasy data scientist Alan Lightfeldt. "Competition
is already sharp around the edges. Most Upper Manhattan homes that
sold in July sold for above asking price. Upper Manhattan is a new battleground for bidding
wars."
In Upper Manhattan, homes typically sold for 1.4 percent more
than their initial asking price. Inwood homes sold for nearly 5 percent above
their asking price in July, second only to Manhattan's uber-luxurious SoHo neighborhood
where homes sold for 8.2 percent above initial asking prices.
In Manhattan, a small increase
(2 percent) in the number of condo units on the market in July was
not enough to absorb the heavy loss of co-op units, which saw a
12.8 percent decline from last year. The decline in co-op units
pushed total Manhattan inventory
down 5.1 percent compared to last year's level.
In Brooklyn, total inventory
increased by 6.3 percent in July compared to last year, despite a
10.9 percent decline in co-op units. The growth of townhouse and
condo inventory more than made up for the co-op decline in
Brooklyn, increasing 10.1 percent
and 19.9 percent year-over year, respectively.
As the summer comes to a close, Manhattan resale prices are expected to grow
by 0.6 percent over the next month, according to the StreetEasy
Manhattan Price Forecast[iv]. In Brooklyn, prices will grow by 1.1 percent over
the next month, according to the StreetEasy Brooklyn Price
Forecast.
Full reports and additional analysis for Manhattan and Brooklyn, including rental and neighborhood
data, can be viewed at streeteasy.com/blog/market-reports.
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 major 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 and
the Hamptons.
Launched in 2006, StreetEasy is based in Manhattan's Flatiron neighborhood. StreetEasy
is owned and operated by Zillow Group (NASDAQ: Z).
StreetEasy is a registered trademark of Zillow, Inc.
[i] The Manhattan Price Index (MPI) and Brooklyn Price Index
(BPI) are 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
2004 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 arms-length sales of homes is sourced from
the New York City Department of Finance.
[ii] The StreetEasy Market Report is a quarterly overview of the
Manhattan and Brooklyn sales and rental markets. 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 2004 in
Brooklyn. The reports are compiled
by the StreetEasy Research team. For more information, visit
http://streeteasy.com/blog/market-reports/. StreetEasy also tracks
data for the five boroughs within New
York City.
[iii] StreetEasy's Upper Manhattan submarket includes the
following neighborhoods: Central Harlem, East Harlem, Hamilton
Heights, Inwood, Manhattanville,
Marble Hill, Washington Heights,
and West Harlem.
[iv] The Manhattan Price Forecast and the Brooklyn Price
Forecast predict the change in resale prices one month out from the
current reported period. Each forecast incorporates the Price Index
for each borough, StreetEasy's comprehensive database of listing
prices and days on market - two leading indicators to future resale
prices to accurately forecast what next month's resale prices will
be before the release of publicly recorded sales data.
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SOURCE StreetEasy