Manhattan and Brooklyn Sales Prices See Smallest Increase Since 2012

NEW YORK, Aug. 29, 2016 /PRNewswire/ --

Key facts for July 2016:

• Manhattan's median resale price increased 2 percent over the last year to $994,458, marking the slowest pace of annual price growth since April 2012.
• Brooklyn's median resale price was $563,416 in July 2016, up 4.7 percent since last year and the slowest annual growth since October 2012.
• Prospect Park was the only submarket where prices declined over the past year, down 2 percent since July 2015, while East Brooklyn resale prices increased the most (10.7 percent).
• Manhattan homes sold in a median of 62 days, up 13 days from last year. Brooklyn homes moved slightly faster, selling in a median of 53 days, up nine days from last year.

Manhattan and Brooklyn continued to show signs of a calming sales market, as price growth in both boroughs slowed to a 2012 pace and homes took longer to sell, according to the July 2016 StreetEasy® Market Reportsⁱ.  

Manhattan's median resale price increased 2 percent since last year to $994,458 in July, the slowest pace of annual price growth since April 2012, according to the StreetEasy Price Indicesⁱⁱ. Upper Manhattan continued to exceed price growth in all other Manhattan submarkets, with an annual increase of 5.9 percent, followed by Midtown (3.2 percent), Upper East Side (2.3 percent) and Upper West Side (1.3 percent). The Downtown submarket experienced the slowest growth, increasing 0.6 percent year-over-year.

Brooklyn's median resale price increased 4.7 percent since last year to $563,416. While still exceeding price growth in Manhattan, July marked Brooklyn's slowest annual growth since October 2012. East Brooklyn continued to dominate price growth in the borough, remaining the only submarket across Manhattan and Brooklyn to experience double-digit annual price growth at 10.7 percent. South Brooklyn is a distant second at 6.4 percent, followed by North Brooklyn (4.6 percent) and Northwest Brooklyn (3.1 percent). Prospect Park was the only submarket among both boroughs to see sales prices fall, declining 2 percent year-over-year.

Even amid slowing price growth, homes sat on the market longer in July than the same time last year. In Manhattan, homes went into contract in a median of 62 days, up 13 days from last year. Homes in the Midtown submarket sat on the market the longest in July, going into contract in a median of 68 days, an increase of 10 days from last year. Homes in the Upper West Side submarket moved the fastest at a median of 54 days, an increase of 18 days since last year.

Brooklyn homes went into contract in a median of 53 days, up nine days from last year. Northwest Brooklyn sales moved slowly at a median of 58 days. Homes in East Brooklyn went into contract the fastest in a median of 44 days – almost a month faster than this time last year.

"Prices are still going up and homes are still expensive across the board, but we're seeing the market settle back into a more balanced pace. Price growth last month is mirroring the way the sales landscape looked in 2012, before the frenzied run-up in prices that characterized the last few years," said StreetEasy economist Krishna Rao. "Sellers will need to continue to level expectations amid a less competitive market, while buyers have the opportunity to negotiate asking prices down even further."

Sellers across both boroughs were less likely to receive their full asking price in July than they were at this time last year. In Manhattan, sellers received a median of 97.7 percent of their asking price, whereas they received 100 percent in July 2015. Manhattan was led by the enduringly competitive Upper Manhattan submarket at 99.7 percent, and the Upper East Side was lowest in the borough at 97.5 percent. In Brooklyn, the median sale-to-list price ratio was 100 percent, meaning Brooklyn sellers typically received all of their initial asking price in July. Falling prices in the Prospect Park submarket fueled a particularly competitive month for the area, standing out as the only submarket where sellers received more than their asking price in July (102.9 percent).

According to the StreetEasy Price Forecastsⁱⁱⁱ, resale price growth in both boroughs will continue to slow over the next 12 months. Price growth in Manhattan is expected to increase 1.3 percent to $1,007,169. Growth will continue to be led by Upper Manhattan with a price increase of 4.1 percent, though Upper Manhattan will remain the borough's least expensive submarket with a price forecast of $665,998. Sales prices in the Upper West Side submarket are predicted to remain essentially flat over the next 12 months, with a forecast of just 0.1 percent. Brooklyn's median resale price is expected to increase 3.9 percent to $585,398, led by North Brooklyn at 6.7 percent growth. East Brooklyn is predicted to have the least growth at 0.4 percent, while Prospect Park's median resale price is expected to grow 2.8 percent.

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics 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 the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

ⁱ 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 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.
ⁱⁱ Median resale prices are measured by the StreetEasy Price Indices. Also referred to as the StreetEasy Manhattan Price Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics 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 2005 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/ 
ⁱⁱⁱ The Manhattan Price Forecast and the Brooklyn Price Forecast predict the change in resale prices 12 months out from the current reported period. Each forecast incorporates the Price Index for each borough as well as a mix of fundamental market factors including: historical recorded sales price, household income, population, and taxes.

SOURCE StreetEasy

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