As the supply of luxury homes in New York City continued to outpace buyer demand, the median price of luxury homes sank to its lowest level since April 2014 in Manhattan and close to its lowest level since May 2016 in Brooklyn, according to the October 2017 StreetEasy® Market Reports.
In Manhattan, the median resale price for a luxury home, defined as within the top 20% of the market, dropped 2.0% year-over-year in October to $4,317,377. It fell 3.6% in Brooklyn, to $1,627,904. In Queens, the median price for a top-tier home rose 6.9% to $1,036,058.
“The onslaught of high-end development in Manhattan and Brooklyn shows no signs of slowing down,” said StreetEasy Senior Economist Grant Long. “Sellers are having a hard time finding buyers without offering severe price cuts, often to levels below their original purchase prices. This isn’t a new phenomenon, but with too much luxury inventory already on the market and even more supply to come, this trend isn’t over. The luxury market in 2018 will continue to favor the buyer, who will likely encounter increasingly anxious sellers willing to slash prices as more new construction hits the market.”
October 2017 Key Findings – Manhattan
- Broader resale prices rose in Manhattan as luxury resale prices fell. Manhattan’s median resale price rose by 2.2% to $1,184,362, while the median luxury resale price fell by 2.0% to $4,317,377. Manhattan’sluxury homes also spent 15 more days on the market for a total of 157 days.
- Rents stagnated across Manhattan; rents fell in Tribeca. Rents in Manhattan grew 0.4% since last year to a median of $3,164. Tribeca’s pricey median asking rent dropped a substantial 25.1% since last year to $5,995.
- Rental discounts reached an all-time high. The share of Manhattan rentals that offered a discount reached their highest levels on record: 28% of rental units were discounted, up 3.4% year-over-year.
October 2017 Key Findings – Brooklyn
- Resale prices rose, except in North Brooklyn. The median resale price in Brooklyn rose 3.4% year-over-year to $751,100. North Brooklyn, the borough’s second-most expensive submarket, was the only submarket where prices declined, with the median down 0.9% year-over-year to $1,095,370.
- Luxury resale prices dropped the most of the three boroughs. Brooklyn luxury resale prices fell by 3.6% to a median of $1,627,904. Luxury homes also spent 11 days longer on the market than last year – reaching a median of 66 days.
- Brooklyn rents grew modestly. Median rent rose just 0.7% to $2,550, marking the 11th consecutive month in which rents grew less than 1% in Brooklyn.
October 2017 Key Findings – Queens
- Queens resale prices rose at the fastest rate. Outpacing Manhattan and Brooklyn, Queens’ median resale price rose 6.8% year-over-year to $510,034.
- Prices for the most expensive homes increased. Unlike Brooklyn and Manhattan, luxury resale prices in Queensrose 6.9% to a median of $1,036,058, but homes spent 46 more days on the market – reaching a median of 95 days.
- Rents in Queens remain unchanged from last year. Queens’ rents declined just 0.1% (or $2) since last year, reaching a median of $2,114.
- Rental discounts reached an all-time high. The share of Queens rentals that offered a discount reached their highest levels on record: 25% of rental units were discounted (up 5.9% year-over-year).
The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed at streeteasy.com/blog/market-reports.
