Real Estate

In Manhattan, home prices spike as inventory flattens out

Manhattan home prices are reaching record highs, as inventory dips this year, according to new data from online marketplace StreetEasy.

The report, covering April through June, showed the median resale price of all homes in the borough grew 5.8 percent over last year to $936,683.

The median resale price of all homes was 11.1 percent above the previous peak level of $842,759 set in April of 2008.

At the same time, inventory was up just one tenth of 1 percent during April through June, compared to last year’s total.

“The key market force driving high prices in Manhattan is contained inventory,” according to the report, which notes the number of for-sale listings available during the three-month period rose by 14.1 percent from the first three months of the year.

Pending sales totaled 3,338—25.3 percent more than the first three months of 2015, but only eight-tenths of 1 percent higher than last year.

That it was higher at all, given price growth and short supply, “is a testament to the strength of domestic and international demand for Manhattan real estate,” according to the report, which is to be published Thursday morning.

The total number of recorded sales dropped 13.6 percent, from 4,401 during the second quarter of 2014 to 3,802 during the same three months in 2015.

Yet the median sales price during the time periods increased from $895,000 to $960,000.

Brooklyn, the other borough StreetEasy keeps tabs on, saw median resale value reach an all-time high—$526,474—during April through June this year, though annual price growth slowed to less than half of the 2014 rate.

Unlike Manhattan, Brooklyn did experience an uptick in the number of homes available for sale, which StreetEasy said helped rein in the price growth.

Brooklyn also didn’t experience the same chokehold on inventory as Manhattan—total inventory in Brooklyn actually went up 17.4 percent from the second quarter of 2014 to 2015.

“Our report really highlights the headwinds that lots of Brooklyn and Manhattan buyers will continue to race as sales prices continue to reach record highs in both boroughs,” Alan Lightfeldt, data scientist for StreetEasy, said in an interview. “Expect fairly high prices, lots of competition among fellow buyers and act fast because homes don’t last long.”

The data also showed “It’s no longer true that Brooklyn as a rule is cheaper than Manhattan,” he added. “Some neighborhoods blow it out of the water.”


Categories: Real Estate, Top News

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