The Real Estate Board of New York (REBNY), a real estate trade association, released a comprehensive report on New York City’s residential market for the third calendar quarter. The findings illustrate strong volume growth as well as modest price increases. We examine the report, which is chock full of details, and present the relevant results to our readership.
Citywide, the number of homes sold increased 28% this quarter compared to a year ago, to 14,073. Meanwhile, the average price rose 3%, year-over-year, to $806,000. The total consideration increased by almost 32%, to $11.3 billion. In a sign the high-end real estate is strong, the number of homes sold with a price tag of over $10 million rose to 34 this quarter, up from 27 a year ago.
The REBNY has heard the strength in the residential market is derived from a recent rise in mortgage rates, which may have taken some buyers off the fence in their decision to buy a home. Meanwhile, with mortgage rates near historic lows, buying a home should remain an attractive option into next quarter, the REBNY believes. New developments and residential rents that have not declined should keep potential buyers interested, with the latter giving a financial incentive to becoming a homeowner.
We now turn to two boroughs with the most relevance to our clientele, Manhattan, and Brooklyn.
In Manhattan, the Upper East Side neighborhood led the way with 1,075 sales, led the way regarding unit sales. This was followed by the Upper West Side (840), Midtown East (358), Midtown West (311), Gramercy/Kips Bay (283), and Chelsea/Flatiron (279).
The average selling price of a home (apartments and 1-3 family townhouses) in Manhattan rose 2% from a year earlier, to $1,404,000. Examining only apartments (co-ops and condos), the borough saw a 4% increase over last year, to $1,353,000.
We can break down apartment sales further, into condos and co-ops. The average selling price of a condo was $1,618,000, a 4% rise from a year ago, but below the citywide increase of 5%. But, co-ops price saw a 7% gain, to $1,132,000. The percentage increase was more than the city’s 5% rise.
The average price per square foot (PPSF) is also important to look at since it tells the potential buyer how much he or she gets for the money. In other words, homes may be larger in certain areas, but fetch a lower price per square foot or vice versa. By this measure, Manhattan’s average PPSF was $1,203, 5% above the year-ago period.
For apartments it was $1,198, a gain of 5% (condos were $1,369, up 12%, while co-ops were $1,061, a 4% increase)
It appears like the TriBeCa neighborhood is a hot place to live. The average selling price of a condo rose 7% from a year ago, to $3,377,000, while the number of units sold increased 10%. Granted, it is a small number, as units sold was 92 in the quarter.
Brooklyn’s Bedford-Stuyvesant area had the highest number of sales with 250. Rounding out the top six were Park Slope (230), East New York/Spring Creek (167), Gravesend/Mapleton (165), Bay Ridge/Fort Hamilton (157), and Bushwick/Wyckoff Heights (139).
The average selling price of all houses in Brooklyn increased 4%, to $645,000. Apartment prices also rose 4%, to $582,000.
Condo prices in Brooklyn skyrocketed 10%, to $728,000. Co-ops in the borough will also cost more, with the average selling price up 6%, to 454,000.
The average PPSF was 6% higher than a year ago, to $474. For apartments, it rose 3%, to $623. Looking further, the average PPSF was $684 for condos (6% increase) and $563 for co-ops (8% increase).
The Williamsburg area appears to have a demand/supply imbalance. The number of condos sold fell 26%, to 112 units. However, the average price of $835,000 was 18% above a year ago. This seems to indicate to us that demand remains strong, and there weren’t enough condos to go around.
All-in-all, this report indicates New York City’s residential real estate market is rolling along. Buyers should be prepared to shell out more money as we roll into spring in a few months, traditionally when home buying picks up.