NEW YORK, Feb. 19, 2020 /PRNewswire/ -- The sluggish
Manhattan sales market persisted
in January, but one segment of the market is heating up. In the
bottom 20% of the Manhattan
market, home prices bucked the wider trend, rising 8.9% to
$480,438 according to the StreetEasy
Price Indexi.
The increase in prices at the low end of the market signals
heightened demand for affordable options in Manhattan. Unfortunately for buyers with lower
budgets, this market segment offers the fewest number of homes to
choose from. Even with a slight 1.6% uptick in inventory, the
lowest price tier had 1,005 homes on the market – 353 fewer than
the next segment up, where the StreetEasy Price Index was
$716,604 in January. The luxury tier,
or the top 20% of the market, had 3,366 homes on the market — a
9.5% increase from January 2019.
While prices fell in the top four quintiles and nearly all
Manhattan submarkets, they
remained steady in Upper Manhattanii at
$636,869. As the cheapest submarket
in the borough, which includes neighborhoods such as Inwood and Washington Heights, buyers with smaller
budgets will continue to have the best luck looking there while it
remains relatively affordable. The number of homes for sale also
increased by 6.5% in the area, a welcome sign for those buyers
seeking affordability.
"Even as the city experiences a slowdown in the sales
market, the cost of entry to homeownership continues to move
further out of reach for many potential buyers," says
StreetEasy Economist Nancy Wu.
"While demand for affordable housing options is consistently
strong, it's likely that first-time buyers and those with lower
budgets will feel the competition even more acutely this upcoming
home shopping season."
See below for additional sales and rental market trends
across Manhattan, Brooklyn and Queens.
January 2020 Key Findings
— Manhattan
The Manhattan sales
market kicked off the year where it left off, with prices down 2.8%
to $1,089,060. This was the smallest
annual decline in prices since October
2018. Meanwhile, Manhattan
homes lingered on the market for nearly four months (119 days) — a
length of time not seen since 2012. As home-shopping season
approaches, buyers should be ready to negotiate
appropriately.
January 2020 Key Findings
— Brooklyn
All signs point to a more competitive Brooklyn sales market in 2020. Brooklyn was the only borough analyzed where
sales prices rose — up 1.4% to $707,436. This was the first increase in the
borough since late 2018, and a welcome sign for Brooklyn sellers trying to strike a deal. As
prices rose, discounts simultaneously became harder to find. One in
10 Brooklyn homes for sale had a price cut in January, a decline of
1.9 percentage points from a year prior.
January 2020 Key Findings
— Queens
Mostly unaffected until now, Queens is starting to feel the broader
slowdown in the sales market. Prices rose steadily in the borough
from 2012 to 2019 as buyers looked here for relative affordability,
but price growth has significantly slowed in the past several
months. In January, the StreetEasy Queens Price Index stagnated at
$507,322. Queens also had the smallest share of price
cuts of all boroughs analyzed with 9.6% of homes getting a discount
in January.
The complete StreetEasy Market
Reportsiii 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 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.
ii The Upper
Manhattan submarket includes Hamilton Heights, Washington Heights, Inwood, West Harlem, Central Harlem, East
Harlem, Manhattanville and Marble Hill.
iii 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.
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SOURCE StreetEasy