NEW YORK, April 26, 2018 /PRNewswire/ -- The lack of
affordable homes in the city has pushed the median price of
properties on the market to new highs, particularly in Brooklyn. Home prices in the borough are
quickly catching up to Manhattan,
with the median recorded sale price rising 6.7 percent from the
prior year, according to the Q1 2018 StreetEasy® Market
Reportsi. However, with large numbers of luxury homes
continuing to flood the New York
City sales market, overall home price growth as measured by
the StreetEasy Price Indicesii remains modest.
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The Brooklyn neighborhoods of
Carroll Gardens, Dumbo, Park Slope and Greenpoint were among the
city's ten most expensive in the first quarter of 2018, based on
median sale price, eclipsing Manhattan neighborhoods such as the Upper East
Side and the West Village. Park Slope was among the ten most
expensive New York neighborhoods
for the first time, with a median recorded sale price of
$1,405,000 – higher than 19 of the 25
Manhattan neighborhoods.
Overall, 19 percent of Brooklyn
neighborhoods in the first quarter of 2018 had a median recorded
sale price higher than the Manhattan median. But the median price per
square foot in Brooklyn and
Queens, at $700 and $500,
respectively, remains much lower than the Manhattan figure of $1,400.
"The spike in recorded sales prices highlights the stiff
competition that budget-minded buyers face entering peak
home-shopping season," said StreetEasy Senior Economist
Grant Long. "While Brooklyn and
Queens were once an oasis for
those priced out of Manhattan, the
cost of homeownership in the outer boroughs is on the rise.
Neighborhoods that were once middle-class have become among the
most expensive in the city. However, those with the means to buy in
these areas will still get more for their dollar than in most of
Manhattan."
Q1 2018 Key Findings — Manhattan
- Sales prices rose the most in Upper Manhattan and
Midtown. The StreetEasy Price Index in Upper Manhattan rose 3.2
percent to $531,719, and 3.1 percent
in Midtowniii to a record high of $1,234,760.
- Upper West Side prices dropped, while the number of days on
market grew. The Upper West Side StreetEasy Price Index dropped
1.1 percent since last year to $1,131,030. Median time on market grew more than
30 percent, from 62 to 81 days, the biggest increase in the
borough.
- The share of price cuts in Upper East Sideiv
rose the most in the borough. The Upper East Side saw the highest
share of homes offering a price cut: up 3.1 percent year-over-year
to 26 percent.
- Rents in Manhattan
stagnated. The StreetEasy Manhattan Rent Indexv was
virtually unchanged since the first quarter of 2017: up 0.8 percent
to $3,142. Rents increased most in
the borough's least expensive submarket: up 2.5 percent annually in
Upper Manhattanvi to $2,309.
- Rental inventory was tight during the winter slowdown.
Inventory in Manhattan shrunk 11.1
percent since last year to its lowest level since the fourth
quarter of 2015.
- The Upper West Side saw the highest share of rentals
discounted in the city. Thirty-three percent of rentals in the
Upper West Side submarket — which includes the Upper West Side,
Lincoln Square, Manhattan Valley and
Morningside Heights — were discounted this quarter, a 2.1 percent
increase since last year.
Q1 2018 Key Findings — Brooklyn
- The StreetEasy Price Index rose in North Brooklyn. North Brooklynvii has surpassed
Northwest Brooklynviii
as the most expensive submarket. The North Brooklyn StreetEasy
Price Index rose 6.1 percent to a record high of $1,192,846, despite the impending L train
shutdown. Inventory fell by 16.3 percent, the biggest decline in
the borough.
- Prices fell in East Brooklyn and Prospect Park. Sales
prices in East Brooklyn dropped 4.1 percent to $645,777, and 3.9 percent in Prospect Park to
$965,378.
- Brooklyn rents grew the
most of the three boroughs. The StreetEasy Rent Index increased
by 1.1 percent in Brooklyn to
$2,546. East Brooklyn, the
second-to-least expensive submarket in the borough, saw the most
growth in rents, up 1.8 percent to $2,421.
- Rental discounts fell in North
Brooklyn. Thirty percent of rentals were discounted in
North Brooklyn, the highest share
in the borough, despite a 1.3 percent decrease since last
year.
Q1 2018 Key Findings — Queens
- Prices in Queens increased
the fastest among the boroughs. The StreetEasy Price Index in
Queens rose 6.8 percent since the
first quarter of 2017, to $516,693.
- Sales inventory jumped in Queens, up 41.2 percent since last year.
South Queens inventory rose the
most: up 90 percent since last year.
- Rents in Queens remained
stagnant. The StreetEasy Queens Rent Index dropped by 1.0
percent to $2,098 since last
year.
- Northwest Queens was the
only submarket where rents declined. Rents dropped 2.4 percent
since last year, to $2,167.
- Central Queens and
Northwest Queens offered the most
rental discounts. Both submarkets had the highest share of
rentals discounted in the borough at 23 percent each.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed at
streeteasy.com/blog/research/market-reports/. Definitions of
StreetEasy's metrics and monthly data from each report can be
downloaded at streeteasy.com/blog/download-data/.
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 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.
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 The StreetEasy Price Indices 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 2007 in Brooklyn and Queens. 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. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here:
http://streeteasy.com/blog/methodology-price-and-rent-indices/
iii The Midtown submarket covers Roosevelt Island, Midtown, Central Park South,
Midtown South, Midtown East, Midtown
West, Murray Hill,
Sutton Place, Turtle Bay, Kips Bay,
Beekman, Hudson Yards and Hell's
Kitchen.
iv The Upper East Side submarket includes
Lenox Hill, Yorkville, Carnegie Hill, Upper Carnegie Hill
and Upper East Side neighborhoods.
v The StreetEasy Rent Indices utilize a similar
methodology to the StreetEasy Price Indices and include only valid
and verified listings from StreetEasy. By 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-price-and-rent-indices/
vi The Upper Manhattan submarket covers Hudson
Heights, Hamilton Heights, Washington
Heights, Inwood, Fort
George, West Harlem, Central Harlem, East Harlem, Manhattanville,
South Harlem and Marble Hill
vii The North
Brooklyn submarket consists of Greenpoint, Williamsburg and
East Williamsburg.
viii The Northwest
Brooklyn submarket consists of Downtown Brooklyn, Fort Greene, Brooklyn
Heights, Boerum Hill, DUMBO, Vinegar Hill, Red Hook, Gowanus, Carroll Gardens, Cobble
Hill, Columbia St. Waterfront District and Clinton Hill.
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SOURCE StreetEasy