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Stabilizing economy, consumer confidence boosting home sales
July 30, 2014
By Steven Spinola
Despite increasing prices, demand in the NYC home sales market remains strong, according to the Real Estate Board of New York’s (REBNY’s) 2014 Second Quarter NYC Residential Sales Report.
The Second Quarter market report results show that NYC has a growing economy and that people still see the City as a good place for families and homeownership.
As prices soar in the Manhattan residential sales market, potential buyers are expanding their geographic considerations to the other boroughs in search of more affordable homes.
Consequently, residential sales activity in the boroughs of Brooklyn and Queens boasted increases, according the Second Quarter report.
The 6% increase in the average sales price of a New York City home did not deter consumers from investing in the residential real estate market. Compared to 2013, when the average sales price was $779,000, the average sales price of a New York City home this quarter was $826,000.
The report showed 10,722 sales of condos, cooperatives and one-to-three family dwellings in New York City during the second quarter.
This was a two percent increase over last year’s robust second quarter.
Out of the other boroughs, Queens proved to be the most popular among home buyers with. 3,323 homes sold — 18 percent more than Brooklyn but still 111 fewer sales than Manhattan.
Brooklyn one-to-three family homes experienced the steepest average sales price increase with 21 percent, bringing the average to $787,000 compared to an average sales price of $649,000 in the second quarter of 2013. In spite of the considerable price increase of Brooklyn 1-3 family homes though, there was an 18% increase in 1-3 family home sales.
Bedford Stuyvesant was one of the most sought after Brooklyn neighborhoods according to the report. Despite a 31 percent increase in the average sale price of 1-3 family homes to $747,000, Bedford Stuyvesant experienced an eight percent increase in the number of one-to-three family dwellings sold with 184.
Popular neighborhoods for sales in Queens included Rego Park/Forest Hills/Kew Gardens (361 sales), Flushing (331 sales) and Jackson Heights/Elmhurst (272 sales).
REBNY also recently released its second quarter 2014 Broker Confidence Index, which marked a pause in a rising trend of confidence dating back to the second quarter of 2013. Due to the commercial brokers’ uncertainty regarding the market towards the end of the year, there was a slight decline in the overall Broker Confidence Index to 8.88 from last quarter’s 9.21.
Despite the dip, a Broker Confidence Index of 8.88 is still quite high, and this slight tempering in the Index compared to last quarter is indicative of commercial brokers’ concern about the pace of sale price increases as well as residential brokers’ concern about the consistent lack of inventory.
There was also a dip in the Commercial Confidence Index to 9.45 from 9.62, marking the first dip in an Index that had been rising steadily since the fourth quarter of 2012. This change was anticipated by commercial brokers, which is indicative of the reliability of this measure as an objective indicator of future market conditions.
The statistical data in these market reports represents consumer confidence and the desirability of New York City as a place to live and call home.
As the residential and commercial sales markets continue to trend upward, consumer confidence and solid market fundamentals will unequivocally determine the success of the industry.
In other REBNY news:
August 12-13 from 9:00am – 5:30pm is the Certified Buyer Representative (CBR) Course. This two-day course, a national trademarked designation of REALNET Learning Services, is facilitated by REBNY and is available to those who wish to differentiate themselves with advanced training in buyer representation. This course takes place in the REBNY Mendik Education Center.
August 14 is the annual REBNY Spring Golf & Tennis Outing at the North Shore Country Club in Glen Head, a fun-filled day during which attendees will be able to network with each other and have a good time. Golf is $425, tennis is $315 and includes singles and doubles brunch, all-day is $225, dinner-only is $150, and a swimming pool is available to all. Each package includes cocktails and dinner, and sponsorships are available. For more information, contact Kathleen Gibbs at 212-616-5246, or firstname.lastname@example.org.
August 20 from 9:00am – 10:30am is REBNY’s Residential Ethics Course for New Members, a non-credit course required for new REBNY members. To register, visit REBNY.com, or contact ResidentialEthicsCourse@REBNY.com.