REBNY Report: Home Prices Increase as Number of Transactions Fall in Adjusting NYC Residential Sales Market

Citywide Residential Sales Fell 8.5% Year-Over-Year in Q3 2019

The average sales price of a home (condominium, cooperative, and one-to-three family dwelling) in New York City during the third quarter of 2019 was $1.07M, a 4% increase year-over-year, according to the Real Estate Board of New York’s (REBNY) Residential Sales Report.

Sales prices increased in every borough except Brooklyn, which experienced a slight decline of 1%. Despite the increase in average sales price, total residential sales consideration (monetary value for completed home sales transactions) decreased 4.7% year-over-year to $12.2B. Every borough experienced a decline in consideration, with the drop most prominent in The Bronx, which experienced a 9.5% drop.

Citywide residential transactions decreased by 8.5% with a total of 1,475 sales when compared to the third quarter of 2018. All five boroughs experienced a decrease in total number of residential sales year-over-year.

In Manhattan, total consideration decreased by a total of 16% quarter-to-quarter despite the average price of a home increasing by 5% year-over-year to $2.07M. This decline was anticipated due to the implementation of the Mansion Tax, which began in July.

“Fluctuations in the residential sales market were expected given the changing policy landscape,” said James Whelan, President of the Real Estate Board of New York. “Despite these declines, a strong economy continues to boost demand for homes citywide.”

HOME SALES BY PROPERTY TYPE

Condominiums: The average sales price of a condominium unit in New York City rose by 8.5% in the third quarter of 2019. The averages sales price increased by 4.5% in Manhattan to $2.8M and by 18% in The Bronx to $276k. It decreased by 7% in Queens to $620K, in Brooklyn by 3% to $1.09M and remained constant in Staten Island at $354K.

Cooperatives: The average sales price of a cooperative unit in New York City decreased 2% to $802K. Citywide, coop transactions declined 21% year-over-year with a decline felt in all five boroughs. In Queens total sales consideration for coops increased by 8%, which was the only borough with increased consideration in the period.

One-to-Three Family Dwellings: The average sales price of a one-to-three family dwelling in New York City decreased 2% to $850k, driven by a steep decline in Manhattan of 25%. The price remained relatively constant in the other four boroughs.

NEIGHBORHOOD HIGHLIGHTS BY BOROUGH

Manhattan: The Upper East Side and Upper West Side in Manhattan continue to represent the majority of condominium sales in the borough, with 14% and 13% respectively. Soho, Greenwich Village and Tribeca are the three neighborhoods with the most expensive average condominium sales price in Q3 2019.

Brooklyn: Cobble Hill had the highest average condominium sales prices in the borough at $3.3M, an increase of almost 600% year-over-year. This was driven by closings at a new development at 100 Amity Street.

Queens: Rego Park and Flushing accounted for the majority of condominium transactions in Queens. Long Island City had the most expensive condominium sales in Q3 2019, with an average sales price of $1.2M, an increase of 9% year-over-year.

The Bronx: One-to-three family dwellings in the Bronx accounted for 68% of all transactions and 83% of all consideration in the borough during Q3 2019. The average price of such buildings rose by 2% year-over-year to $590K.

Staten Island: One-to-three family buildings in Staten Island accounted for 88% of all transactions in Staten Island and 94% of all total consideration during the quarter. The $601k average sales price of one-to-three family buildings in the borough represents a 2% increase year-over-year.

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association.  Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, and salespeople; banks, financial service companies, utilities, attorneys, architects, and contractors; corporations, co-partnerships, and individuals professionally interested in New York City real estate.

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