Brooklyn Q3 2017 Report
This quarter the insatiable demand for home ownership in Brooklyn was confirmed. Buyers not only responded favorably to Brooklyn’s building boom, but the speed at which both new construction and resale apartments were absorbed this quarter was striking. Third Quarter 2017 proved to be the strongest quarter for closings since 2008.
Buyers continued to expand their neighborhood selections at various price segments of the market. The $1,000,000 to $2,000,000 price range claimed more sales than any other prior quarter, as did sales in the $500,000 to $750,000 as new offerings in South Brooklyn motivated buyers. Sellers have struggled to keep up with the pace and consequently, there were large declines in inventory throughout all of 2017.
Sales rose 31% versus a year ago despite 13% fewer listings overall. New development sales more than doubled last year’s figure and resale co-ops had their strongest quarter in four years. Resale condo sales rose 3% compared to an already strong Third Quarter 2016. Finally, there were 15% more contracts signed during Third Quarter relative to a year ago.
Brooklyn’s median price reached $733,000, 13% higher than last year’s figure and just 2% below last quarter’s nine-year record high. Median price in nearly all neighborhoods in Brooklyn had year-over-year price gains. Average price was down 4% from last year, the result of a shift in market share of sales away from Brooklyn’s priciest neighborhoods and towards South Brooklyn.
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Manhattan Q3 2017 Report
The Manhattan real estate market has now experienced two consecutive quarters of annual growth in closed sales as a result of improved contract activity during first six months of 2017 versus 2016. In Third Quarter 2017, the Manhattan market saw closings rise by 3% year-over-year to 3,703 sales, primarily due to strong performances in the new development and resale co-op markets.
Signed contracts fell by 4% year-over-year, to 2,468 contracts signed. An undersupplied co-op market, delayed new development launches, adjustments in foreign capital controls, and the lack of lower-priced inventory in the resale condo market have affected market-wide absorption.
Listed inventory has stabilized this year. At 5,930 active listings, inventory was nearly level with last year, rising by just 1% annually. However, despite more closed sales and level inventory in Third Quarter 2017, fewer
sales in the preceding nine months nevertheless pushed months of supply to 5.4 months, moving closer to the six-to-nine-month supply-demand equilibrium threshold.
Pricing trends were mixed in Third Quarter 2017. Market-wide median price and price per square foot both experienced annual gains, with the median price rising by 10% and median price per square rising 2%. Conversely, the effects of rising inventory, widespread price decreases, and market-wide negotiability at the higher end of the market worked in tandem to apply downward pressure on average price and average price per square foot figures, which fell for the first time since Fourth Quarter 2013, by 3% and 5%, respectively. If you are ready to start your real estate search besure to view New York City rentals and homes for sale on Corcoran.com.