Home shoppers, particularly first-time buyers and those on a lower budget, continue to face stiff competition for less expensive homes in New York City during summer’s busy home shopping season, according to the May 2017 StreetEasy® Market Reports.
“New York City housing is increasingly becoming a story of two very different markets,” said StreetEasy Senior Economist Grant Long. “Luxury residential developers continue to remake the Manhattan skyline, but the market demand for units in these buildings has struggled to keep pace with supply. As the luxury market continues to cool, housing in more affordable areas of the city is experiencing just the opposite. While high demand for affordable housing options exists year-round, it is felt even more acutely now during the height of summer home shopping season.”
Among key findings for Manhattan:
- Manhattan resale prices hit another record high. The Manhattan median resale price increased 1.3% year-over-year to $1,001,114.
- Lowest-priced homes saw prices rise the most. Homes in the bottom end of the market saw an 11.8% price increase year-over-year, while luxury market prices dropped 3.4% year-over-year.
- These same homes spent less time on the market. Manhattan’s lowest-priced homes spent a median 21 days less on the market than they did last month.
- Cuts to sales listing prices were few and far between. 11.6% fewer homes offered discounts compared to this time last year. In the lower-priced segment, less than 1 percent of homes offered a discount in May.
- Manhattan rents continue to cool. Manhattan’s median rent price decreased 1.3% to $3,246 compared to last year and has dropped steadily since last fall.
Key findings for Brooklyn:
- Brooklyn resale prices continue to rise. The median resale price increased by 4% year-over-year to $575,574.
- These rising prices hit the lowest-priced homes hardest. The median resale price for Brooklyn’s lowest-priced homes increased 3% year-over-year, while prices for homes in the luxury segment decreased 5.4%.
- Like Manhattan, price cuts in Brooklyn were down. 9.6% fewer Brooklyn homes offered a discount compared to this time last year. Many of Brooklyn’s price cuts were made on homes in the high-end market: 9.8% of luxury home listings offered a discount.
- Brooklyn rents remained low compared to 2016. Brooklyn’s median rent price fell 1.8% year-over-year to $2,837.
