Photo: Robert Clark
Compared to last year, Manhattan homes took two weeks longer to sell in August, with a “glut” of luxury homes starting to impact the overall market.
And while Brooklyn’s market mirrored Manhattan’s, the story in Queens was quite different, according to a report released today by the listing site StreetEasy.
Manhattan’s median price remained flat at $1.1 million from last year in August. And while prices for the borough’s least expensive homes rose less than 1 percent year-over-year — the slowest pace in almost five years — prices fell almost 3 percent for the most expensive.
Homes were on the market a median of 84 days, two weeks longer than last year and on pace to reach a five-year high this winter, says StreetEasy. Midtown homes saw the slowest pace of sales at a median of 182 days on the market, while Inwood was the fastest at 49 days.
“The glut of luxury housing in Manhattan and Brooklyn has been a key driver of the slower-moving markets in those areas, and we’re beginning to see the oversupply at the top of the market have a small effect on the prices of less expensive units,” says StreetEasy Senior Economist Grant Long in the report.
The price gains experienced at the lower and middle ends of the market have helped stall sales.
Meantime, median prices were up 3.7 percent annually to $754,000 in Brooklyn last month, almost twice as fast as the same time last year. Brooklyn homes spent a median of 68 days on the market — 8 days longer than August 2016.
Prices in Queens were up 7.4 percent year-over-year to $504,000 in August, the fastest pace recorded city-wide by StreetEasy for the month. And despite the price gains, homes sold in a median of 53 days last month, 6 days faster than the same time last year.
“We generally see limited home inventory relative to demand at lower price points, particularly between $500,000 and $1,000,000. This dynamic is one of the driving factors of rising prices in Queens, where more homes fall within that price range, as well as in less expensive areas of Brooklyn and Manhattan,” Long tells BuzzBuzzNews.
The least expensive homes in Queens saw prices rise 9.4 percent from last year in August, while prices for the most expensive increased just 3.5 percent.
“More affordable housing options are still limited and as a result, New Yorkers are increasingly turning to Queens for the best deals, causing home prices and competition there to spike,” says Long in the report.
Looking ahead to the fall, StreetEasy expects buyers to maintain the upper hand, at least at the high end of the market.
“We expect only modest growth in sale prices heading into fall as new developments in areas such as Downtown Brooklyn, Tribeca and Chelsea keep rising prices in check, particularly at the top of the market. Those looking for more affordable homes will need to act fast when they see a unit they like within their price range,” Long tells BuzzBuzzNews.
Click here to read the entire report.