NEW YORK, June 21, 2018 /PRNewswire/ -- Home prices
and sales inventory spiked in May, with inventory across the city
reaching all-time highs, according to the May 2018 StreetEasy Market Reportsi.
While sales inventory often peaks in May amid home-shopping season,
this year set new records. Inventory in Manhattan rose 16.7 percent compared to last
year, the largest year-over-year increase on StreetEasy
recordii. Brooklyn and
Queens saw similar surges, with
inventory up 23.4 percent and 42.8 percent, respectively.
![(PRNewsfoto/StreetEasy) (PRNewsfoto/StreetEasy)](https://mma.prnewswire.com/media/660146/StreetEasy_Logo.jpg)
While inventory levels rose dramatically, the number of recorded
sales fell for the third consecutive month. Recorded sales dropped
in every submarket across Brooklyn, Manhattan and Queens, with the largest annual dips occurring
in Upper East Side, Midtown and the Rockaways. Despite the
additional inventory, the StreetEasy Price Indexiii rose
in all three boroughs since last year. Prices in Queens increased the most: up 9.1 percent to
an all-time high of $544,587, making
the median home in Queens
$45,000 more expensive than a year
ago.
"Sellers are betting on a wave of demand from the peak shopping
season, but this summer's market has turned out to be a crowded
one," says StreetEasy Senior Economist Grant Long. "However, prices are high and
continue to rise. More affordable homes are the hardest to find,
and are sure to sell quickly. But higher-end homes, particularly
those joining the market from the ongoing stream of new
development, will be pressured to lower prices or linger on the
market. This summer is poised to offer an excellent negotiating
opportunity for buyers with big budgets."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
May 2018 Key Findings —
Manhattan
- Sale prices rose in all submarkets but one. The
StreetEasy Manhattan Price Index increased 0.6 percent to
$1,157,995. Prices rose in four of
the five submarkets, led by an increase in the Upper East Side,
where the median home price rose 1.9 percent to $1,038,046. Prices in Downtown Manhattan remained flat at
$1,691,204.
- Inventory rose at a record pace. Sales inventory in
Manhattan rose 16.7 percent
year-over-year. The Upper East Side experienced the largest
increase, with inventory up 20.2 percent since last year.
- One out of every six homes received a discount. Sixteen
percent of homes for sale were discounted, an increase of 3.6
percentage points year-over-year.
- For-sale homes spent less time on the market. Units in
the borough spent a median of 55 days on the market, a three-day
dip from last year. The Upper East Side and Upper West Side were
the only submarkets where homes lingered longer — up 10 days and 17
days, respectively.
- Rents rose in every Manhattan submarket. The StreetEasy
Manhattan Rent Indexiv rose 1.4 percent to $3,183. Rents in Upper Manhattan rose the most —
up 2.5 percent to $2,307.
- Fewer rentals offered a discount. Sixteen percent of
rentals in Manhattan were
discounted in May, a decrease of 1.6 percentage points from last
year.
May 2018 Key Findings —
Brooklyn
- Prices reached new highs in North
Brooklyn. The StreetEasy North Brooklyn Price Index
increased 11.1 percent to $1,229,838,
a record high for the submarket despite the looming L train
shutdown. Borough-wide, prices rose by just 1.1. percent since last
year, to $720,555.
- The number of homes with a price cut reached an all-time
high. The share of sales with a price cut reached an
all-time high of 12.4 percent, a rise of 3.3 percentage points from
May 2017.
- Sales inventory continued to climb, except in North Brooklyn. Sales inventory in the
borough reached a record high — up 23.4 percent over last year.
Inventory rose the most in South
Brooklyn, which saw a 44.7 percent increase over last year.
North Brooklyn was the only
submarket where inventory dropped, by 6.7 percent since last
year.
- Brooklyn homes spent more
time on the market. Homes stayed on the market for a median of
53 days in the borough, 6 more days than last year. North Brooklyn homes are coming off the market
after an average of 43 days — 26 days faster than last year.
- Rents rose in all submarkets except North Brooklyn. The StreetEasy Brooklyn
Rent Index increased 1.4 percent year-over-year to $2,562. South
Brooklyn experienced the largest spike: up 2.6 percent to a
median rent of $1,885. North Brooklyn was the only submarket where
rents stagnated, likely because of the L train shutdown starting in
April 2019. Rents in the submarket
remained flat at $3,062.
May 2018 Key Findings —
Queens
- Price cuts rose to an all-time high. The share of homes
with a price cut reached a new high in Queens at 11.1 percent, an increase of 3.5
percentage points over last year.
- Sales inventory swelled. Queens saw the largest year-over-year increase
in inventory, rising 42.8 percent. All five submarkets in the
borough saw a surge in inventory.
- Queens homes are selling
slightly faster than last year. The median number of days on
market for Queens homes was 56,
down 2 days from last year. Homes in Northeast Queens and Northwest Queens took longer to sell than last
year, with an increase of 12 days and 6 days on the market,
respectively.
- Rents remained flat. The StreetEasy Queens Rent Index
held at $2,113. But rents in
South Queens rose 6.9 percent
year-over-year, to a median of $1,775.
- Queens was the only borough
with an increase in the share of discounted rentals. Seventeen
percent of Queens rentals offered
discounts: up 2.9 percentage points over last year, and the highest
share of the three boroughs analyzed.
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,
Brooklyn and Queens 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, Brooklyn and Queens with more
than a decade of history for most metrics. The reports are compiled
by the StreetEasy Research team. For more information,
visit https://streeteasy.com/blog/research/market-reports/.
StreetEasy tracks data for all five boroughs within New York
City, but currently only produces reports
for Manhattan, Brooklyn and Queens.
ii Sales inventory is the number of sales listings
available on StreetEasy at any point during the month
iii 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/
iv 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/
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SOURCE StreetEasy