After years of surging prices, the Manhattan sales market is returning to a more stable rate of growth, according to the February 2016 StreetEasy® Market Reports. The median resale price in Manhattan rose just 4.4 percent in February to $982,437, the slowest pace of growth since October 2012.
While the Upper Manhattan sub-market continued to see double-digit increases, rising 10.4 percent from last year, it was the East Brooklyn sub-market that saw the biggest annual increase in sale prices. Resale prices grew 20.5 percent year-over-year to $473,095 in February, more than three times faster than Brooklyn as a whole. Brooklyn's median resale price rose 6.9 percent from last year to $539,300.
"Affordability is primarily driving home buyers to East Brooklyn and Upper Manhattan," says StreetEasy data scientist Alan Lightfeldt. "New demand for housing in these parts of the city is a double-edged sword, however. As more buyers search for value in neighborhoods like Bedford-Stuyvesant and Central Harlem, we're going to see prices increase. Heading into the Spring buying season, prospective buyers should expect to encounter fierce competition for dwindling inventory in East Brooklyn and Upper Manhattan."
Key facts for February 2016:
- Resale prices in the East Brooklyn submarket grew 20.5 percent, more than triple the Brooklyn pace and the largest annual increase across Manhattan and Brooklyn
- Manhattan saw the slowest pace of growth since October 2012, with the median resale price increasing 4.4 percent from last year.
- The median resale price of Manhattan luxury homes fell 0.1 percent from last year to $3,224,589 in February, the only segment of the market to experience a decline in prices
- Sales price growth will continue to slow. According to the StreetEasy Price Forecast, the median resale price in Manhattan is expected to grow only 3.2 percent over the next 12 months, and by less than one percent in Brooklyn.