StreetEasy, the New York based tracker of housing, reported Friday that the spring selling season in the two most populous boroughs of the city looks to be brisk. Among its findings:
- Manhattan’s median resale price rose 1.3% over the past year, to $990,142.
- Brooklyn’s median resale price rose 5.2% over the past year, to $569,429.
- Upper Manhattan median resale price grew at the highest rate year-over-year among Manhattan submarkets, at 7.8%, while the median resale price in East Brooklyn reported the highest year-over-year sale price growth in Brooklyn, up 11%.
- Manhattan had nearly 7% fewer homes on the market than a year ago. In Brooklyn, there were 2% more homes on the market than at this time last year.
- Thirty-eight percent of Manhattan homes had a price cut in February, down from a peak of 45% in September. In Brooklyn, 26% of homes had a price cut, down from a high of 32% in September.
In both boroughs, the lower-priced submarkets experienced the most sales price growth in February. East Brooklyn reported the highest year-over-year sale price growth of all Brooklyn submarkets, up 11% since last February to a median resale price of $492,688. In Manhattan, the Upper Manhattan submarket reported the highest price appreciation, up 7.8% to a median resale price of $673,874.
Low inventory and few price cuts will be the defining characteristics of this year’s home shopping season. In Manhattan, there are nearly 7% fewer homes to choose from than a year ago. Thirty-eight percent of Manhattan homes had a price cut in February, down from a peak of 45% in September. Upper and Downtown Manhattan submarkets reported the greatest drops in inventory among all Manhattan submarkets. In Upper Manhattan, there were 23.4% fewer homes on the market this February than last, and 7.6% fewer in the Downtown submarket.
While there were 2 percent more homes on the market in Brooklyn overall, shoppers looking in Northwest Brooklyn, East Brooklyn and Prospect Park submarkets had fewer homes to choose from in February than last year. There were 19.7% fewer homes on the market in Northwest Brooklyn, 11.7% fewer in East Brooklyn and 7.4% fewer in Prospect Park compared to this time last year. Twenty-six percent of homes had a price cut in Brooklyn, down from a high of 32% in September.
“Low inventory and strong demand is the perfect mix for a competitive housing landscape, and that’s what this home shopping season is shaping up to be. Buyers shopping in areas where homes are still relatively affordable, such as Upper Manhattan and East Brooklyn, should be prepared to move quickly on a home when they find the right fit,” said StreetEasy Senior Economist Grant Long. “Even though prices are on the rise, growth is still much slower than in years past and may level off in coming months. The skyline is filled with cranes. More homes will be coming on the market, which will likely ease price appreciation, bringing some relief to prospective buyers, especially those interested in higher price points.”
In Manhattan, the median rent was $3,199, down 0.3% since last February, according to the StreetEasy Rent Indices. This is down an average of $70 per month from its August 2016 peak. In Brooklyn, the median rent dropped 2.6% to a median rent of $2,787 per month, which is about $130 per month below its July 2016 peak.
Upper Manhattan reported the largest rent increase of all Manhattan submarkets, up 3.5% year-over-year to a median rent of $2,392. In Brooklyn, South Brooklyn reported the largest rent increase with prices up 2.7% to a median rent of $1,711. Rents fell in Northwest Brooklyn, North Brooklyn, Midtown Manhattan and the Upper East Side, with North Brooklyn reporting the greatest drop; rents here fell more than 8% since last February.
