Residential dealmakers have plenty to celebrate as market surges

Steven Spinola
President, Real Estate Board of New York

For the second quarter of 2013, New York City’s single-family homes were the big winners.  The volume of single family home sales has lagged behind the apartment market in the city’s residential real estate recovery.  In the second quarter of 2013, however, single family homes have caught up in sales volume seeing the largest boost since the end of the homebuyer tax credit, which spurred activity immediately after the financial crisis.

This increase was found by the Real Estate Board of New York’s Second Quarter New York City Residential Sales Report, the most comprehensive quarterly review of recorded transactions and includes data from all five boroughs.

Citywide average sales volume for one to three family homes increased 21 percent to 4,552 transactions, while sales prices increased six percent to $575,000, according to REBNY’s report.

Brooklyn led this single-family-homes-trend with average prices for one-to-three family dwellings in the borough increasing eight percent to $649,000 and sales volume for one-to-three families in Brooklyn surging 29 percent to 1,432 transactions. In Bedford Stuyvesant, average prices for one-to-three-family homes surged 24 percent to $571,000, compared to second quarter 2012.

Total consideration, the total dollar value of home sales in the five boroughs, during this quarter was $8.2 billion, an increase of seven percent compared to the second quarter of 2012.  This was the highest second quarter total consideration in NYC since the recession, demonstrating the market continues to recover.

Despite elevated sales volume and steady average sales prices compared to second quarter 2012, REBNY’s report found less price appreciation than expected given the lack of inventory and the strong market demand. Going forward, we will see what impact rising mortgage rates will have on sales activity. But the overall market is seeing steady gains and we anticipate the trend will continue.

REBNY’s report also found that citywide home sales volume for all homes (which includes cooperatives, condominiums and one-to-three-family dwellings) increased nine percent to 10,551 transactions compared to second quarter 2012. The average sales price of a home citywide dipped slightly just over one percent to $779,000. The decrease is attributed to an increase in sales outside of Manhattan where average prices are significantly lower, which brings down the overall average price in NYC. 

Additionally, sales of homes for more than $10 million declined to 22 this quarter, from 40 in the first quarter 2013 and 30 in the second quarter of 2012, due to changes in the capital gains tax rate coming into effect. 

Other points of note from REBNY’s Second Quarter 2013 Residential Sales Report:

  • Manhattan neighborhoods with the most home sales this quarter were: the Upper East Side (754 sales), the Upper West Side (559), Midtown East (268), Midtown West (240), Chelsea/Flatiron (220), and Gramercy/Kips Bay (194).
  • Brooklyn residential home sales activity was focused in Bedford Stuyvesant (222), East New York/Spring Creek (134), Park Slope (128), Bay Ridge/Fort Hamilton (111), Gravesend/Mapleton (107), and Borough Park (105).
  • Queens neighborhoods with the most home sales were: Flushing (366), Rego Park/Forest Hills/Kew Gardens (312), Springfield Gardens/Jamaica/South Jamaica/Baisley Park (236), and Jackson Heights/Elmhurst (204).
  • Bronx neighborhoods with the most residential home sales this quarter were Parkchester/Westchester Square/ Castle Hill/Soundview (88 sales), City Island/Pelham Bay/Pelham Strip/Country Club/Throgs Neck/Schuylerville (83), Riverdale/Fieldston (79), and Woodlawn/Williamsbridge (72).

For the full report, log on to the member’s side of www.REBNY.com and go to “Reports/Surveys” and then click on “2nd Quarter 2013.”

In other REBNY News:

Whistles and battery or crank operated radios are needed for NYC Seniors. REBNY’s Residential Brokerage Division partnered with the NYC Department for the Aging for REBNY’s Annual Summer Donation Drive 2013. In the wake of Hurricane Sandy and with the summer heat, the needed crank or battery-operated radios will help keep seniors informed in the event of brownouts and whistles will allow for notification of emergency officials and neighbors during an emergency. Each summer thousands of elderly New Yorkers die in heat waves across the city. Donations will benefit New Dorp Beach Senior Center Friendship Club on Staten Island. Items can be dropped off at the reception area of REBNY, 570 Lexington Avenue, from 11 am to 4 pm Monday to Thursday and from 11 am to 2 pm on Fridays. Please include batteries with the radios. For more information, contact Jeanne Oliver-Taylor at jtaylor@rebny.com.

REBNY is asking members to log into the Members Only section on www.REBNY.com and view their profile to make sure information is accurate so it may appear correctly in the 2014 REBNY Diary and Manual. Also, there are still great advertising opportunities available for the Diary so don't miss this affordable chance to have your company standout among the more than 13,000 members included in the Roster of Members section. The deadline to purchase advertising space is Wednesday, July 31. For more information, contact Marta Posner at mposner@rebny.com.

The industry’s best residential deals are wanted for REBNY’s 25th Anniversary Residential Deal of the Year and Charity Gala. The deadline for submissions is Sept. 12, 2013. Your re-sales, new development sales and rental transactions that have closed or will close between Sept. 14, 2012 and Sept. 12, 2013 are eligible. The prestigious Henry Forster Award and Most Promising Residential Rookie Salesperson of the Year Award will also be announced during the celebration on Oct. 24, 2013 in the Grand Ballroom at The Pierre Hotel, 2 East 61st St. Tickets are $525 per person or $5,000 per table. Corporate sponsorships are still available.
For more information, go to www.rebny.com or email Jeanne Oliver-Taylor at jtaylor@rebny.com.