Home prices and sales inventory in Manhattan, Brooklyn and Queens spiked in May, with inventory across the city reaching all-time highs, according to the May 2018 StreetEasy Market Reports.
The company said Thursday that while sales inventory often peaks in May amid home-shopping season, this year set new records. Inventory in Manhattan rose 16.7% compared to last year, the largest year-over-year increase on StreetEasy record. Brooklyn and Queens saw similar surges, with inventory up 23.4% and 42.8%, respectively.
While inventory levels rose dramatically, the number of recorded sales fell for the third consecutive month. Recorded sales dropped in every submarket across Brooklyn, Manhattan and Queens, with the largest annual dips occurring in Upper East Side, Midtown and the Rockaways. Despite the additional inventory, the StreetEasy Price Index rose in all three boroughs since last year. Prices in Queens increased the most: up 9.1% to an all-time high of $544,587, making the median home in Queens $45,000 more expensive than a year ago.
“Sellers are betting on a wave of demand from the peak shopping season, but this summer’s market has turned out to be a crowded one,” says StreetEasy Senior Economist Grant Long. “However, prices are high and continue to rise. More affordable homes are the hardest to find, and are sure to sell quickly. But higher-end homes, particularly those joining the market from the ongoing stream of new development, will be pressured to lower prices or linger on the market. This summer is poised to offer an excellent negotiating opportunity for buyers with big budgets.”
May 2018 Key Findings — Manhattan
- Sale prices rose in all submarkets but one. The StreetEasy Manhattan Price Index increased 0.6% to $1,157,995. Prices rose in four of the five submarkets, led by an increase in the Upper East Side, where the median home price rose 1.9% to $1,038,046. Prices in Downtown Manhattan remained flat at $1,691,204.
- Inventory rose at a record pace. Sales inventory in Manhattan rose 16.7% year-over-year. The Upper East Side experienced the largest increase, with inventory up 20.2% since last year.
- One out of every six homes received a discount. 16% of homes for sale were discounted, an increase of 3.6 percentage points year-over-year.
- For-sale homes spent less time on the market. Units in the borough spent a median of 55 days on the market, a three-day dip from last year. The Upper East Side and Upper West Side were the only submarkets where homes lingered longer — up 10 days and 17 days, respectively.
- Rents rose in every Manhattan submarket. The StreetEasy Manhattan Rent Index rose 1.4% to $3,183. Rents in Upper Manhattan rose the most — up 2.5 % to $2,307.
- Fewer rentals offered a discount. 16% of rentals in Manhattan were discounted in May, a decrease of 1.6 percentage points from last year.
May 2018 Key Findings — Brooklyn
- Prices reached new highs in North Brooklyn. The StreetEasy North Brooklyn Price Index increased 11.1% to $1,229,838, a record high for the submarket despite the looming L train shutdown. Borough-wide, prices rose by just 1.1% since last year, to $720,555.
- The number of homes with a price cut reached an all-time high. The share of sales with a price cut reached an all-time high of 12.4%, a rise of 3.3 percentage points from May 2017.
- Sales inventory continued to climb, except in North Brooklyn. Sales inventory in the borough reached a record high — up 23.4% over last year. Inventory rose the most in South Brooklyn, which saw a 44.7% increase over last year. North Brooklyn was the only submarket where inventory dropped, by 6.7% since last year.
- Brooklyn homes spent more time on the market. Homes stayed on the market for a median of 53 days in the borough, 6 more days than last year. North Brooklyn homes are coming off the market after an average of 43 days — 26 days faster than last year.
- Rents rose in all submarkets except North Brooklyn. The StreetEasy Brooklyn Rent Index increased 1.4% year-over-year to $2,562. South Brooklyn experienced the largest spike: up 2.6% to a median rent of $1,885. North Brooklyn was the only submarket where rents stagnated, likely because of the L train shutdown starting in April 2019. Rents in the submarket remained flat at $3,062.
May 2018 Key Findings — Queens
- Price cuts rose to an all-time high. The share of homes with a price cut reached a new high in Queens at 11.1%, an increase of 3.5 percentage points over last year.
- Sales inventory swelled. Queens saw the largest year-over-year increase in inventory, rising 42.8%. All five submarkets in the borough saw a surge in inventory.
- Queens homes are selling slightly faster than last year. The median number of days on market for Queens homes was 56, down 2 days from last year. Homes in Northeast Queens and Northwest Queens took longer to sell than last year, with an increase of 12 days and 6 days on the market, respectively.
- Rents remained flat. The StreetEasy Queens Rent Index held at $2,113. But rents in South Queens rose 6.9% year-over-year, to a median of $1,775.
- Queens was the only borough with an increase in the share of discounted rentals. 17% of Queens rentals offered discounts: up 2.9 percentage points over last year, and the highest share of the three boroughs analyzed.
