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NYC’s Single Family Homes See Largest Boost Since Recession as Real Estate Recovery Continues
July 23, 2013
--City’s only five-borough market report shows gains for one-to-three-Families in second quarter; Brooklyn leads boost--
NEW YORK, July 23, 2013 – New York City’s single family homes, which have lagged behind the apartment market in the city’s residential real estate recovery, caught up in the second quarter with sales volume seeing the largest boost since the end of the homebuyer tax credit, which spurred activity immediately after the financial crisis.
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 the Real Estate Board of New York’s (REBNY) Second Quarter New York City Residential Sales Report released today.
Brooklyn led the 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 last year.
Total consideration for all residential sales in New York City during this quarter was $8.2 billion, an increase of seven percent compared to the second quarter of last year. This was the highest second quarter total New York City consideration since the recession, demonstrating a continuing recovery in the market.
Despite elevated sales volume and steady average sales prices compared to last year, the report found less price appreciation than expected given the lack of inventory and the strong market demand.
“It’s surprising that we haven’t seen more average price appreciation given that sales activity has been on an upward trajectory since the recession ended in 2009 and given the lack of inventory,” said Steven Spinola, REBNY President. “It remains to be seen what impact rising mortgage rates will have on sales activity going forward. But the market overall is seeing steady gains and we anticipate the trend will continue.”
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 last year. The average sales price of a home citywide dipped slightly just over one percent to $779,000, which is attributed to an increase in sales outside of Manhattan where average prices are significantly lower, which brings down the overall New York City average price.
Sales of homes over $10 million declined from 40 in the previous quarter and 30 in the second quarter of 2012 to 22 this quarter, because of tax implications.
REBNY’s Second Quarter 2013 Residential Sales by Neighborhood:
- 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).
REBNY’s report is the most comprehensive quarterly review of recorded transactions and includes data from all five boroughs
About The Real Estate Board of New York
The Real Estate Board of New York is the city’s leading real estate trade association with more than 13,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city’s real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors.
Please visit us online at www.REBNY.com.
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