Brooklyn Q1 2017 Report
Springtime came early to Brooklyn as First Quarter was the strongest first quarter in six years in terms of sales. Improved consumer sentiment and the expectation of rising interest rates on the horizon motivated buyers. This quarter also continued the streak of year-over-year price gains seen throughout all of 2015 and 2016. Demand for new developments, particularly larger residences at price points rarely offered in Manhattan, drove overall prices higher.
There were 7% more closed sales compared to a year ago, but not all apartment types trended equally. Sales of resale condos and new developments increased from First Quarter 2016, while sales in the resale co-op market actually declined. Constricted co-op inventory continues to plague that sector of the market.
Contracts signed increased 14% compared to First Quarter 2016 and were slightly higher than last quarter. Prior to this quarter, overall inventory was on the rise, yet sellers did not replenish the inventory that sold during the quarter and as a result, inventory dropped 10%. The increase in days on market to 82 days was
likely the result of tight supply causing lingering listings to finally sell.
Market-wide average and median price climbed for the tenth consecutive quarter and both surpassed their previous record highs. Median price reached $750,000, 17% above the peak price in Third Quarter 2008 and average price reached
$968,000, 28% higher than its peak in Second Quarter 2016. Market-wide average and median price per square foot were also nine-year record highs, both figures exceeding $1,000 per square foot.
Download the full report here.
Manhattan Q1 2017 Report
The first quarter often sets the tone for the rest of the year and this quarter proved the Manhattan market is off to a positive start in 2017. Contract activity increased year-over-year for the first time in six quarters, registering a 3% increase versus First Quarter 2016 and a 5% increase versus last quarter.
In First Quarter 2017, buyer and seller expectations continued to adjust, as buyers who chose to hold off on purchasing in 2016 came back into the market. At the same time, many sellers adjusted to current market conditions and prices in order to sell their properties. These factors worked in tandem to fuel improved activity in the early part of this year.
The Manhattan market remains largely under-supplied at 5.3 months, despite a 10% year-over-year increase in inventory and a month’s more of supply than last year. In addition to under-supply and constricted quality inventory at the lower price points, last year’s buyer hesitancy and high prices led to fewer contracts signed throughout last year, contributing to the 8% decrease in closed sales in First Quarter 2017.
The increase in inventory in part resulted in listings spending an average of 14 days longer than last year, as buyers felt more comfortable shopping around. However, smaller and less expensive residences remained the most competitive market for buyers in Manhattan.
Meanwhile, pricing was nearly flat. The average price increased just 1% to $2.149M and the median price fell by 1% to $1.134M. Average price per square foot rose 3% to $1,918 per square foot, however the median price per square foot dropped by 1% to $1,360.