Brooklyn, Queens are more expensive than they’ve ever been; Manhattan rents are down
Market reports are in from the third quarter of this year, and sales numbers are setting new records, especially in Brooklyn and Queens. From Douglas Elliman, numbers show sales prices in Brooklyn and Queens climbing for the fourth year in a row across the board for condos, co-ops and one- to three-family homes, as well as luxury properties (defined as the upper 10 percent of the market). The median sales price rose 8.7 percent to $735,000; the average sales price went up 14.8 percent to $983,511; the median sales price for luxury properties rose 23.5 percent to $2.5 million. All three numbers represent record increases. The rising market has likely been the result of a healthy job market in New York City and population growth that’s five years ahead of schedule.
$1.145 million was the average sales price for a Brooklyn condo (a 24 percent jump from last year) and $812,008 was the median price (a 6.8 percent jump); the median price for co-ops rings in at $428,000, and for one- to three-family homes that number is $830,000. The average sale price for luxury property is $3.099 million, a 25 percent leap from last year. Closings from new developments are responsible for a sizable portion of those increases, according to Elliman data whiz Jonathan Miller.
Charts: Elliman Report via Douglas Elliman
Sales volume increased by 15 percent from the previous year as, somewhat surprisingly, inventory fell by over one third. Listings are spending more time on the market, meaning that buyers aren’t purchasing just anything with a big price tag. Also notable was the report from Brown Harris Stevens which found that townhouse prices averaged over $1 million in the borough for the first time, and the price per square foot for townhouses rose to a record $469, an 18 percent increase.
Charts: Elliman Report via Douglas Elliman
Queens sales set records as well, due to the inevitable “Brooklyn spillover” factor. In that borough, median sales prices rose 10.7 percent to $499,000, (another record); the average sales price increased about eight percent to $562,216. Prices also set records in Queens for all properties, with the average condo sales price rising 7.4 percent from last year to $613,337. The average co-op price rose six percent to $266,574; one- to three-family homes averaged $677,234, and luxury properties went for $1.276 million on average. Miller noted the obvious: “Manhattan has been maxed out, so now it’s Brooklyn,” Miller told Crains, with Queens getting the spilllover and the Bronx “seeing a tremendous amount of rental activity.”
Chart via CitiHabitats
Is a softer rental market a silver lining for renters? For the time being it may be. For Manhattan, the median rental price was down for the second time this year to $3,396/month, down 1.2 from last year, though the average, $4,117, is .8 percent higher than last year. Miller told Curbed the rental market can be expected to “bump along over the near future since the rental market is sitting on top of a fairly strong city economy.” Brooklyn renters aren’t as lucky: Median rental prices were down for two months in a row, then began beating their year-ago numbers. The median rental price rose 2.4 from last year to $2,949/month, with the average increasing 2.5 percent to $3,197. The number of new leases jumped 85.6 percent to 1,248 due to lots of new inventory entering the market.
Read the full reports here: Elliman Report; The Corcoran Report; Citi Habitats September 2016 Market Report; Brown Harris Stevens Brooklyn Market Reports
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