NEW YORK, Feb. 26, 2016 /PRNewswire/ --
Key facts for January
2016:
- Manhattan's yearly price
growth has been slowing since December
2012, rising 5.3 percent year-over-year in January to
$991,468.
- Brooklyn's monthly price
growth has been slowing since July
2015, rising 8.5 percent year-over-year in January to
$540,186.
- The East Brooklyn submarket experienced the fastest sales price
growth and showed no sign of slowing; the median resale price grew
25.3 percent from January 2015 – the
highest annual growth for any submarket tracked by StreetEasy.
- In Manhattan, the median time
on market was 90 days, the longest amount of time recorded since
January 2013. In Brooklyn, the median time on market was 85
days – an increase of 18 days year-over-year.
- In Manhattan's luxury tier,
the median time on market extended to 131 days, due in large part
to slowing condo sales.
The Manhattan and Brooklyn real estate markets kicked off the
new year in a much less competitive state than in recent years. In
a possible sign of buyer fatigue, sales prices across Manhattan and Brooklyn continue to grow, but at a much
slower pace than the fever pitch of the past two years, according
to the January 2016 StreetEasy®
Market Reportsi. Homes also spent significantly more
time on the market in January than in recent history, another sign
of a softening market.
In January, the median resale price in Manhattan increased 5.3 percent year-over-year
to $991,468, the lowest annual growth
since December 2012, according to the
StreetEasy Price Indicesii. The pace of price growth has
slowed for 24 consecutive months (since February 2014), a trend that is expected to
continue over the next year. The latest StreetEasy Price Forecast
predicts Manhattan prices will
grow by 4.1 percent to $1,032,128 by
January 2017iii.
Fueling slower price growth is a recent decline among
Manhattan homes priced in the top
tier of the market. According to a StreetEasy analysis,
Manhattan's luxury tier
experienced seven consecutive months of price decline after peaking
in May 2015 at a median price of
$3.27 millioniv. By
December 2015, the median price fell
0.3 percent to $3.26 million.
Resale price growth in Brooklyn
was higher than Manhattan in
January, but the borough is beginning to mirror Manhattan's slowdown, as monthly price growth
declined for the seventh consecutive month. The median resale price
in Brooklyn grew 8.5 percent from
last year to $540,186. Brooklyn price growth was led by the East
Brooklyn submarket, where the median resale price grew 25.3 percent
year-over-year to $494,564 – the
highest annual growth recorded in any submarket in StreetEasy's
history. The median resale price in Brooklyn is expected to grow by a much slower
3.7 percent to $560,032 by
January 2017, according to the
StreetEasy Price Forecast.
"Sales and rent price growth are stabilizing across Manhattan and Brooklyn," says StreetEasy data scientist Alan
Lightfeldt. "Sellers in this market may discover that they cannot
set prices and expectations high with the anticipation of a quick
sale. The market is starting to look more like 2013, a period of
stable growth prior to the surge of 2014 and 2015."
Manhattan homes that went into
contract in January spent a median of 90 days on the market, the
longest recorded since January 2013.
In the luxury tier, homes remained on the market for an additional
33 days from last year, reaching a median of 131 days. In
Brooklyn, listings spent a median
of 85 days on the market, 18 days longer than last January. Condo
unit sales were chiefly responsible for lengthening overall time on
market, with condos spending a median of 103 days in Brooklyn and 91 days in Manhattan – a yearly increase of 45 and 11
days, respectively. This severity suggests an impetus beyond
seasonality and strongly indicates greater hesitation among
buyers.
The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis,
neighborhood data and graphics can be viewed at
streeteasy.com/blog/market-reports.
Submarket
Name
|
Jan. 2016
StreetEasy Price Index
|
Annual
Change
|
Manhattan
|
$991,468
|
5.3%
|
Downtown
|
$1,242,329
|
5.9%
|
Midtown
|
$849,933
|
2.2%
|
Upper West
Side
|
$1,077,458
|
6.1%
|
Upper East
Side
|
$995,600
|
5.8%
|
Upper
Manhattan
|
$623,017
|
10.3%
|
Brooklyn
|
$540,186
|
8.5%
|
North
Brooklyn
|
$923,987
|
7.7%
|
Northwest
Brooklyn
|
$784,214
|
4.7%
|
Prospect
Park
|
$804,491
|
10.3%
|
South
Brooklyn
|
$390,657
|
7.6%
|
East
Brooklyn
|
$494,564
|
25.3%
|
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 the Flatiron
neighborhood of Manhattan. StreetEasy is owned and operated by
Zillow Group (NASDAQ: Z and ZG).
StreetEasy is a registered trademark of Zillow, Inc.
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 prices are measured by the StreetEasy
Price Indices. Also referred to as the StreetEasy Manhattan Price
Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics
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
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 The Manhattan Price Forecast and the Brooklyn Price
Forecast predict the change in resale prices 12 months out from the
current reported period. Each forecast incorporates the Price Index
for each borough as well as a mix of fundamental market factors
including: historical recorded sales price, household income,
population, and taxes.
iv
http://streeteasy.com/blog/manhattan-luxury-real-estate-price-declines/
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visit:http://www.prnewswire.com/news-releases/manhattan-and-brooklyn-homes-linger-on-the-market-as-buyers-hesitate-in-january-300226732.html
SOURCE StreetEasy