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Manhattan Trends:
- The year ended in a more stable condition than 2016, as three of the past four quarters registered level or annual increases in closed sales activity.
- Fourth Quarter 2017 closed sales were essentially unchanged from last year, and at 3,140 closings, carried the 2017 year-end total to 13,400 closed transactions.
- Signed contracts fell 14% year-over-year, largely in response to non-market factors like tax reform that are adding complexity to buyer decision making.
- Nevertheless, as closing figures suggest, the chasm between buyers’ and sellers’ expectations on pricing, value, and velocity that affected sales in 2016 has narrowed over the last twelve months.
- Still, market activity varied significantly by product type.
- In Fourth Quarter 2017, resale co-op sales rose 4% annually, for the third consecutive quarter, as purchasers sought value.
- Resale condos, which have been limited by lingering high prices, experienced a 3% decrease in closed sales year-over-year.
Brooklyn Trends:
- The real estate market in Brooklyn closed out 2017 on a high note, as the market continued to expand.
- However, the year-over-year gains in the number of closed sales were less robust in Fourth Quarter 2017 relative to the first three quarters of the year.
- At 1,318 apartment closings, the total number of closed sales in Fourth Quarter 2017 still rose 7% year-over-year.
- For buyers, limited inventory at all price points was a key factor for lower growth levels this quarter – as sellers were unable to keep pace with the strong demand for housing.
- New development product played a crucial role in spanning the shortfall of resale supply and the market responded favorably with swift sales of new product.
- This was the strongest fourth quarter for Brooklyn new development sales in seven years.
- Market wide median price was $725,000, up 4% year-over-year, and a slight improvement from Third Quarter 2017. Average price adjusted downward 4% as there were fewer sales over $2,000,000.