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REBNY Report: NYC Average Home Sales Price Reaches All-Time High in 2Q 2016
July 12, 2016
-- High-end condo sales drive price gains; citywide sales volume softens --
The average sales price of a New York City home (cooperatives, condominiums, and one-to-three-family dwellings) hit $1,018,000 in the second quarter of 2016, a new all-time high since the Real Estate Board of New York (REBNY) began tracking home sales data in 2006. This rise was driven by a concentration of sales in the high-end segment of the market, according to REBNY’s New York City Second Quarter 2016 Residential Sales Report. Average sale price increases were seen in all five boroughs this quarter, but citywide sales volume dipped.
The citywide, 10 percent year-over-year increase in average home sales price was dominated by some of Manhattan’s most expensive, new condominium buildings including 432 Park Avenue. This boosted the average sales price for a home in Manhattan by 20 percent to $2,118,000 and the average sales price for a condo in Manhattan by 21 percent to $2,843,000 compared to the second quarter of 2015.
The middle segment of the market also marched higher with the median sales price for a New York City home increasing seven percent to $582,000 year-over-year.
“While high-end Manhattan sales drove up the average sales price, the continuous demand for middle market homes is pulling the median sales price of homes higher as well,” said John Banks, III, REBNY President. “In response, the New York City residential sales market started to face some resistance as activity was down compared to last year.”
There were 11,031 New York City home sales in the second quarter of 2016, a slight two percent decline from the second quarter of 2015. Riding off the first quarter of 2016’s surge in sales activity in the Bronx and Staten Island, the two boroughs registered the only year-over-year sales volume gains in the second quarter of 2016. Bronx home sales rose to 889, a 22 percent increase compared to last year’s second quarter total of 728. Similarly, home sales in Staten Island increased six percent to 1,027 compared to the second quarter of 2015.
From the second quarter of 2015 to the second quarter of 2016, the average sales price for a home in: Manhattan rose 20 percent to $2,118,000; Brooklyn increased five percent to $820,000; Queens rose nine percent to $514,000; the Bronx increased five percent to $382,000; Staten Island rose six percent to $444,000.
The total consideration (monetary value for completed transactions) for all residential sales in New York City during the second quarter of 2016 was $11.2 billion, an eight percent increase from the second quarter of last year. Year-over-year, total consideration rose: 9.4 percent to $6.52 billion in Manhattan; less than one percent to $2.17 billion in Brooklyn; nine percent to $1.74 billion in Queens; 28.4 percent to $340 million in the Bronx; and 12.1 percent to $456 million in Staten Island.
Additional highlights from REBNY’s Second Quarter 2016 Residential Sales Report:
- The average sales price of a Manhattan condominium in Midtown East nearly doubled to $4,929,000, while the number of Midtown East condo sales rose 27 percent to 127 compared to the second quarter of last year. This large price increase was largely attributable to recordings of sales at 432 Park Avenue where the 19 recordings this quarter averaged $19.3 million.
- The Williamsburg condo market in Brooklyn surged in activity rising 43 percent to 120 sales compared to the second quarter of 2015. Despite this increase, the average sales price for a condo in Williamsburg fell 13 percent to $937,000.
- The average sales price of a condominium in Jackson Heights, Queens rose 14 percent year-over-year to $407,000, while registering 40 condo sales, an increase from the 38 recorded sales in the second quarter of last year.
- Bronx neighborhoods Parkchester / Westchester Square / Castle Hill / Soundview registered 112 one-to-three family home sales this quarter, a 33 percent increase over the 84 sales in second quarter of 2015. The average sales price of a one-to-three family dwelling in the area was $428,000, an increase of 11 percent compared to the second quarter of 2015.
REBNY’s report is the most comprehensive quarterly review of recorded transactions and includes data from all five boroughs.