Q4 2019 Manhattan and Brooklyn Sales Market Report

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OVERVIEW:

• New development sales rose 11% and resale co-op closings improved 1%, but a 13% drop in resale condo sales drove the market-wide figure lower.  Overall, sales fell 2%.
• Average days on market was the highest figure since 2013.  It rose 10% year-over-year, to an average of 123 days.
• Median price fell 3% year-over-year to $995K, a four-year low.  A 23% drop in sales over $3M and fewer resale condo sales forced the median price lower.
• Contracts signed rose for the second consecutive quarter for the first time since 2015.  Contracts fell in October, but rose in November and December – for a total of 2,482.
• With 7,332 apartments on the market, supply rose to its highest fourth quarter level since 2010.  New development inventory rose by double-digits, but active resales grew by smaller amounts.
• Average price per square foot fell to $1,744 – its lowest level since 2014.  This was driven by a 41% drop in sales over $3,000 per square foot and a greater market share for less-expensive neighborhoods and resale co-ops.

OVERVIEW:

• Fourth Quarter 2019 in Brooklyn stayed on trend with the rest of this year as sales activity moderated versus a strong 2018 – while home values continue their upward climb.
• Buyers confronted both limited inventory at lower price points and increased transfer taxes at the high end, causing activity to moderate versus prior quarters.
• Meanwhile, as prices and inventory continued to increase, buyers (now with more choices) grew more patient, causing average days on market to increase.
• After last year’s prices hit nearly a three-year low, there were minimal year-over-year median and average price increases this quarter.
• Median price of $678K was 2% higher year-over-year.  Average price was only slightly above last year’s figure yet average price per square foot increased 11% to $943, reaching a near three-year high.
• This dynamic reflects the shift towards more efficiently sized apartments being purchased… as buyers chose to hold the line on price while sacrificing space, the outcome of much price sensitivity in the market.
• Studio and one bedroom sales combined represented 46% of sales, the highest in four years, while three plus bedroom residences shrank to its lowest share of sales in over two years.