The NYC townhouse report shows the Brooklyn market backed off from the robust activity seen in 2016, slowed by rising prices throughout the borough. The trend of townhouses undergoing extensive renovations as either a value-add investment, rental income property or even a quick flip continued, but at a slower pace in 2017. Some neighborhoods, particularly Bedford-Stuyvesant, Crown Heights and Bushwick, experienced fewer quick resells in 2017.
Overall price figures in 2017 were higher than a year ago, which likely contributed to tempered activity. However, single-family townhouse sales during 2017 expanded throughout western parts of Brooklyn, particularly in Red Hook, Park Slope, and Boerum Hill. Single-family townhouse sales increased 8% compared to 2016 as buyers were enticed by newly renovated townhouses. Multi-family sales declined 7% year-over-year which drove the overall townhouse market down in 2017. Although multi-family townhouse sales improved in few neighborhoods such as Park Slope, Greenpoint and Brooklyn Heights, the decline in northern and eastern parts of Brooklyn far outweighed those gains.
Buyers paid an average price of $1.853M for a townhouse in Brooklyn, 11% more than in 2016. Median townhouse price increased 9% year-over-year, driven by an increase in townhouse sales over $2M in addition to prices continuing to appreciate rapidly in western parts of Brooklyn.
NYC townhouse closings in Manhattan increased 10% in 2017, a rebound from the six-year low sales figure experienced in 2016. While both single-family and multi-family townhouse sales improved, activity was still below the very strong 2012 to 2015 performance. With the exception of the East Side, all areas experienced an overall annual increase in sales. Price metrics were mixed: average price barely surpassed the previous year’s figure, average price per square foot slightly declined, but median price sharply declined. Segments of the market that tend to be less expensive, particularly the Uptown submarket and the multi-family market in most areas, outpaced the higher end, which put downward pressure on overall prices.