Brooklyn Q2 2017 Report
Brooklyn’s second quarter maintained the pace set at the start of 2017 and improved on the sales activity recorded in Second Quarter 2016. Challenged by limited resale inventory, buyers turned to new development properties in numbers significant enough to boost market-wide sales and prices overall. But more aggressive pricing and the lack of low-priced inventory also generated some buyer resistance; the average days on market increased by two weeks compared to a year ago.
There were 17% more sales than a year ago, but the increase was due entirely to closings in new developments. The number of large-scale development properties that commenced closings this quarter doubled versus Second Quarter 2016. Meanwhile, resale co-op sales were 6% lower year-over-year and resale condo activity was unchanged.
While price metrics in many Brooklyn neighborhoods backed off from the highs seen during First Quarter, there were still strong year-over-year increases in all market segments. Driven by new development sales, the market-wide average price of $937,000 was the second-highest seen since 2008; median price climbed 27% year-over-year to $760,000, topping last quarter’s high by 9%.
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Manhattan Q2 2017 Report
Second Quarter 2017 closed sales increased by 2% year-over-year, the first increase in closed sales since Fourth Quarter 2015. With the increase in closed sales also came record high price figures that surpassed previous records set in First Quarter 2016.
In addition to being up 2% year-over-year, closed sales rose 31% versus First Quarter 2017. Resale co-op and new development sales drove the increase, with closed sales rising year-over-year by 8% and 2%, respectively.
Similar to First Quarter 2017, there were annual gains in contract activity in the resale co-op a and $5M plus market, however, overall condo contract activity took a step back from last year. A few factors contributed to this trend. In addition to active inventory being expensive, while overall economic sentiment has been cautiously optimistic, interest rates rose in March and there were some mixed signals in job and financial markets. The timing of combined school and religious holidays caused buyers to pause purchasing decisions during much of April. Additionally, some new developments that were expected to launch in the first half of the year either opened later than expected, or will not launch until the fall.
Price figures increased from both last year and last quarter. The median Manhattan sale price was $1.193M in Second Quarter 2017, up 8% versus a year ago a nine-year high for the borough. The average sale price increased by 7% from last year to $2.163M, also a record high.
Meanwhile, inventory growth has been decelerating for the past year and this quarter was nearly level with last year. Despite minimal inventory growth and an increase in closed sales, months of supply rose by 11% due to fewer closed sales in preceding quarters, inching the market closer to the six-to-nine month supply-demand equilibrium metric.