Upper Manhattan Sales Prices Growing Three Times Faster Than Manhattan

Sale prices in the Upper Manhattan submarket increased 20.4 percent in October, according to the October 2015 StreetEasy Market Reports

Nov 23, 2015, 05:00 ET from StreetEasy

NEW YORK, Nov. 23, 2015 /PRNewswire/ --

Key facts – October 2015:

  • Resale prices in the Upper Manhattan submarket increased 20.4 percent year-over-year, more than triple the Manhattan pace and the largest annual increase across Manhattan and Brooklyn.
  • Resale prices in the East Brooklyn submarket increased 19.1 percent compared to last October, double the Brooklyn pace.
  • New this month, the StreetEasy Rent Indices measure median rents across Manhattan and Brooklyn. In October, Manhattan median rents increased 5.6 percent year-over-year to $3,158. In comparison, Brooklyn median rents rose 3.2 percent year-over-year to $2,672.
  • Rent growth in East Brooklyn was the highest across both boroughs in October, rising 7.9 percent year-over-year to $2,573.

Manhattan and Brooklyn resale prices continued their record-high setting streak in October. The Manhattan median resale price increased 6.4 percent from last year to $985,144, while the Brooklyn median resale price increased 10 percent to $548,290, according to the StreetEasy Price Indicesi.

The submarkets of Upper Manhattan and East Brooklyn saw the fastest increase in prices. Sale prices in Upper Manhattan increased 20 percent, three times the rate of prices in Manhattan, while East Brooklyn saw prices grow twice as fast (19 percent) compared to the Brooklyn borough as a whole.

"Upper Manhattan and East Brooklyn are having a moment, and affordability is the primary driver," said StreetEasy data scientist Alan Lightfeldt. "With the median prices in Manhattan just shy of the $1 million mark, value has taken on even greater importance to New York homebuyers. They're taking their search to the neighborhoods that offer more options at a relative deal. As long as price growth continues unabated in the premier areas of Manhattan and Brooklyn, Upper Manhattan and East Brooklyn will attract even more buyers."

Rents in Upper Manhattan and East Brooklyn also outpaced rents in their respective boroughs, according to the new StreetEasy Rent Indicesii. Manhattan median rent rose 5.6 percent from last year to $3,158, while Upper Manhattan median rent increased 7.7 percent to $2,333. Rent growth in Brooklyn was slower by comparison, rising 3.2 percent from last year to a median of $2,672. Annual rent growth in East Brooklyn led both boroughs in October, rising 7.9 percent to $2,573.

Manhattan and Brooklyn sales markets remained just as competitive as last year due to inventory constraints. In Manhattan, homes that sold in October spent a median time of 45 days on the market, one day shorter than last year, and the median sale-to-list price ratio rose to 100 percent, meaning home sellers could expect to receive their full asking price in October. Among Manhattan's most competitive neighborhoods was Chelsea, where homes that sold in October typically spent 42 days on the market and sold for 1.5 percent above the seller's initial asking price.

In Brooklyn, homes that sold in October spent a median time of 42 days on the market, unchanged from last year. The median sale-to-list price ratio rose 0.7 percent from last year to 99 percent, meaning homes typically sold for 1 percent less than their initial asking price. Among the most competitive neighborhoods was Park Slope, where homes that sold in October spent a median of just 34 days on the market – the shortest time among all Manhattan and Brooklyn neighborhoods – and sold for 1 percent below the seller's initial asking price.

Looking ahead, resale prices in Manhattan are expected to increase by 0.6 percent to $991,486 over the next month, according to the StreetEasy Manhattan Price Forecast. In Brooklyn, prices are expected to increase 1.3 percent to $555,656 over the next month, according to the StreetEasy Brooklyn Price Forecastiii.  

Submarket Name

October 2015

StreetEasy

Price Indexi

Year-over-Year

Change

October 2015

StreetEasy

Rent Indexii

Year-over-Year

Change

Manhattan

$985,144

6.4%

$3,158

5.6%

Downtown

$1,233,034

7.0%

$3,674

5.3%

Midtown

$841,692

3.6%

$3,359

5.1%

Upper West Side

$1,097,726

9.6%

$3,198

6.0%

Upper East Side

$956,485

2.3%

$2,763

6.7%

Upper Manhattan

$658,196

20.4%

$2,333

7.7%

Brooklyn

$548,290

10.0%

$2,672

3.2%

North Brooklyn

$872,356

3.4%

$3,168

4.1%

Northwest Brooklyn

$862,755

12.2%

$3,021

3.7%

Prospect Park

$801,964

9.8%

$2,897

3.2%

South Brooklyn

$397,153

9.8%

$1,721

4.1%

East Brooklyn

$441,033

19.1%

$2,573

7.9%

The complete StreetEasy Market Reportsiv with additional analysis and neighborhood data for Manhattan and Brooklyn can be viewed at streeteasy.com/blog/market-reports.

About StreetEasy:
StreetEasy is New York City's leading local real estate marketplace on mobile and the Web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons.

Launched in 2006, StreetEasy is based in Manhattan's Flatiron neighborhood. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z).

StreetEasy is a registered trademark of Zillow, Inc.

i The StreetEasy Price Indices, or the Manhattan Price Index and Brooklyn Price Index, are monthly indices that track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2004 in Brooklyn. Given this methodology, each Index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Data on sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
ii The StreetEasy Rent Indices, or the Manhattan Rent Index and the Brooklyn Rent Index, are monthly indices that track changes in median rents of condo, co-op and townhouse units. Each index uses a repeat-sales methodology using rentals listings on StreetEasy, comparing the rent price of the same properties across several years. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-rent-indices/
iii The Manhattan Price Forecast and the Brooklyn Price Forecast predict the change in resale prices one month out from the current reported period. Each forecast incorporates the Price Index for each borough, StreetEasy's comprehensive database of listing prices and days on market - two leading indicators to future resale prices to accurately forecast what next month's resale prices will be before the release of publicly recorded sales data.
iv The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2004 in Brooklyn. The reports are compiled by the StreetEasy Research team. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn. For more information, visit http://streeteasy.com/blog/market-reports/.

SOURCE StreetEasy



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