NEW YORK, Aug. 22, 2019 /PRNewswire/ -- Though the
NYC sales market continued to slow
in July, sellers offered fewer discounts than they did earlier in
the summer, according to the July
2019 StreetEasy Market Reportsi.
In Manhattan, the number of
price cuts offered by sellers declined four percentage points from
two months earlier, when 15.6% of homes had a discount — the
highest share in 2019 so far. Queens and Brooklyn saw a similar trend, with price cuts
down 1.5 and 2.8 percentage points from the highs of earlier this
summer.
The StreetEasy Price Indexii in Brooklyn and Queens dropped to levels not seen since 2013,
falling 1.4% in Brooklyn and
remaining unchanged in Queens
since last year. However, these price declines were driven largely
by a surplus of new inventory in East Brooklyniii and
Northeast Queensiv.
Meanwhile, in Manhattan, prices
decreased 4.5% to $1,099,175, their
lowest level since April 2015.
With so many NYC homes not
finding buyers, there is a continued glut of for-sale inventory. On
top of the existing surplus, new inventory increased in all three
boroughs analyzed, led by Queens,
where 877 new homes came onto the market. Total for-sale inventory
in the borough reached a new high of 3,610 homes, up 22.5% from
last year.
"It's typical for the number of price cuts to dip during the
summer, when many sellers skip town and shift their focus away from
selling their homes," says StreetEasy Economist Nancy Wu. "But for motivated sellers, now is
actually the time to offer discounts and help prospective buyers
notice your property. With the return of home-shopping season this
fall, and a wave of new homes coming to market, sellers will soon
have even more competition, making additional price cuts — possibly
at record levels — virtually inevitable."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
July 2019 Key Findings —
Manhattan
- Prices dropped to 2015 levels. The StreetEasy Manhattan
Price Index decreased 4.5% to $1,099,176, its lowest level since April 2015.
- Price cuts declined everywhere except Upper Manhattan.
The share of price cuts dropped 1.4 percentage points boroughwide
to 11.6%. Seller discounts in Upper Manhattanv, the only
submarket without a decrease, remained the same year-over-year at
12.9%.
- Total sales inventory increased. Inventory rose 10.9%
compared to last July, with 9,822 homes on the market.
- Recorded sales prices dropped to 2017 levels.
Manhattan's median recorded sales
price dropped 12% since last year to $967,250 — dipping below $1 million and hitting the lowest level since
October 2017.
- Rents reached all-time highs. The StreetEasy Manhattan
Rent Indexvi reached $3,295 — an annual increase of 3.0%. Rents rose
in all submarkets, led by the Upper East Side, where a 2.8% uptick
drove rents to $3,060.
July 2019 Key Findings —
Brooklyn
- Home prices in Brooklyn
dropped, led entirely by weakness in East Brooklyn. The
StreetEasy Brooklyn Price Index dropped 1.4% since last year, led
by a 3.3% decline in the East Brooklyn submarket — including
Bed-Stuy, Bushwick, Crown Heights, and East New York — where a surplus of inventory
and new development has led to falling prices.
- The share of price cuts remained the same. The share of
price cuts in the borough remained at 11.8% year-over-year. The
share of price cuts in North
Brooklynvii decreased the most, falling 2.5
percentage points year-over-year to 12.1%.
- Inventory increased boroughwide, led by Northwest Brooklyn. The number of homes
for sale in Brooklyn rose 16.9% to
6,031, with inventory in Northwest
Brooklynviii up 29.5%, to 934 homes on the
market.
- The median recorded sales price fell. Recorded sales
prices fell 1.4% from last year to $799,000.
- Rents rose at the fastest rate since 2016. The
StreetEasy Brooklyn Rent Index increased 3.2%, with rents reaching
an all-time high of $2,676 in the
borough. This was the fastest annual increase in Brooklyn rents since April 2016.
July 2019 Key Findings —
Queens
- For the first time since 2013, prices did not rise.
Boroughwide, the StreetEasy Queens Price Index remained the same as
last year at $508,339, led by
Northeast Queens, where a surplus
of inventory caused a dip in prices.
- The same number of sellers offered price cuts as last
year. The share of price cuts stayed flat at 10.8% in
Queens overall, but decreased in
Northwest Queensix,
falling 1.9 percentage points to 11.3%.
- Sales inventory grew the most of the boroughs
analyzed. Total sales inventory reached a record high in the
borough at 3,610 homes for sale — up 17.8% from last year.
- Recorded sales prices reached a record high.
Boroughwide, the median recorded sales price reached a record high
of $585,000 — up 8.3%
year-over-year.
- Rents increased at the fastest rate of all boroughs
analyzed. Rents in Queens
jumped 3.5% in July, the fastest rate of growth in the city. The
StreetEasy Queens Rent Index reached a new high of $2,182.
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and
graphics, can be viewed here. Definitions of StreetEasy's metrics
and monthly data from each report can be explored and downloaded
via the StreetEasy Data Dashboard.
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 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.
iii The East Brooklyn submarket includes Bed-Stuy,
Bushwick, Crown Heights, and East New
York.
iv The Northeast Queens submarket includes
Bayside, Briarwood, Flushing, Kew
Gardens, Kew Gardens Hills,
Oakland Gardens and Whitestone.
v The Upper Manhattan submarket includes Central
Harlem, East Harlem, Hamilton Heights, Inwood, Morningside Heights, Washington Heights and West Harlem.
vi The StreetEasy Rent Indices are monthly indices
that track changes in rent for all housing types and are currently
available from January 2007 in
Manhattan, January 2010 in Brooklyn, and January
2012 in Queens. Each index
uses a repeat-sales method similar that used to calculate the
StreetEasy Price Indices. The repeat method evaluates rental price
growth based on homes in a given geography that have listed for
rent more than once. More details on methodology here.
vii The North Brooklyn submarket includes
Williamsburg, East Williamsburg and Greenpoint.
viii The Northwest Brooklyn submarket includes
Downtown Brooklyn, Fort Greene,
Brooklyn Heights, Boerum Hill, DUMBO, Red
Hook, Gowanus, Carroll Gardens, Cobble Hill, Columbia St.
Waterfront District and Clinton
Hill.
ix The Northwest Queens submarket includes
Astoria, Long Island City, Sunnyside and Ditmars-Steinway.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/nyc-sellers-offer-fewer-price-cuts-despite-a-surplus-of-homes-for-sale-300905544.html
SOURCE StreetEasy