Q2 2019 Manhattan and Brooklyn Sales Market Report

Contact me here for assistance with buying or selling a home in Manhattan and Brooklyn.

OVERVIEW:

• Closed sales rose 5% annually, the first year-over-year increase in sales since 2017. New development closings pushed sales higher, as resales weathered another drop in sales.
• Contracts signed fell a minimal 1% versus last year to 3,083. Signed contracts spiked in April, likely due to changes in state transfer and mansion taxes, but fell year-over-year in both May and June.
• Days on market increased by 18% annually to 132 days on average. This was the most amount of time that Manhattan apartments have spent on the market in six years.
• Inventory rose 15% year-over-year to 8,174 units, the first time that the Manhattan market has surpassed 8,000 listings since 2011. Fewer signed contracts and more new development building launches pushed supply levels higher.
• Median price rose for the first time in five quarters, up 11% annually to a record high.  Fewer resales and more development sales pushed the market share of closings into higher price ranges this quarter.
• Average price-per-square-foot was essentially unchanged with last year. Drops in in average resale price per square foot were offset by the year-over-year increase in new development sales, which generally trade at a premium to resale co-ops and condos.

OVERVIEW:

• Although Brooklyn sales fell short of last year’s best spring season on record, Second Quarter 2019 was still relatively strong.
• Over 1,500 apartments closed between April and June, one of the highest recorded sales figure for any second quarter in the past decade.
• The difference this quarter versus prior second quarters, is that new development sales comprised their highest share of closing figures in seven years, yet most of these contracts were signed in earlier years.
• Closings in the resale market, a more direct snapshot of recent sales activity, underperformed and reached a six-year low.
• Yet, despite the easing sales activity, which caused inventory to increase by 11%, properties that did sell did so with fewer days on market than last year.
• A few signs of strength in the Brooklyn market emerged this quarter, including increased sales across all product types in the $1M to $2M price range.  Nearly one-quarter of all buyers transacted in this price segment, the highest share on record.
• Overall average and median price rose to its highest point since early 2017 and notably, the resale condo median price figure set a new record.