Q3 2019 Manhattan and Brooklyn Sales Market Report

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OVERVIEW:

• Closed sales declined by 4% annually, as sales that would have likely closed this quarter did so in second quarter due to the July 1 tax hike.
• Contracts signed fell by a relatively small percentage for the second quarter in a row, down just 2% from last year.  Contract activity was up slightly in July, stable with last year in August, but declined in September.
• Days on market increased by 14% annually to 112 days on average. This was the most amount of time that Manhattan apartments have spent on the market since 2013.
• Supply rose by its smallest percentage since 2017, up 3% year-over-year. Nevertheless, third quarter inventory was last higher in 2011.
• Median price fell by its greatest percentage since 2009, down 8% annually to $1.010M, a four-year low.  A significant 25% drop in sales over $2M forced the median lower.
• Average price-per-square-foot fell to its lowest level since First Quarter 2014. The average drop is a result of fewer sales over $2M, especially in prime locations, and a greater share of closings being of resale co-ops.

OVERVIEW:

• A variety of factors impacted the Brooklyn market during Third Quarter 2019 including uncertainly following the state mansion and transfer tax increases that took effect on July 1st.
• For Brooklyn buyers seeking value, constrained inventory continues to hinder sales activity.  Overall inventory rose however, due mainly by new development units.  In fact, new development supply increased two-and-a-half times faster than resale inventory.
• In total, there were 1,450 closings during Third Quarter 2019, which was 5% lower than a year ago and the fifth consecutive quarter of annual sale declines.
• Overall average price was unchanged versus last year, while overall median price fell by just 3%.
• However, resale condo prices remained high – and this quarter the median price was the second highest seen in over ten years.
• The new development median price, on the other hand, reached its second lowest point since 2016 – as new product under $750,000 appealed to buyers.
• Meanwhile, the median co-op price reached a ten-year record high, which caused a 6% decline in sales versus last year.