The New York City sales market shifted further in favor of buyers this November, particularly in Manhattan, according to the November 2018 StreetEasy Market Reports.
The StreetEasy Manhattan Price Index fell 3.3% from the prior year, down to $1,133,988 — nearly the same level as in October 2015. Sales inventory remained high, with 18% more homes on the market than this time last year, though inventory levels were down slightly from their October 2018 peak.
With falling prices, the number of home sales rose slightly in Manhattan. There were 2.8% more homes sold in November than the same time last year. The number of home sales rose by 10.5% in Queens and stagnated in Brooklyn, despite prices rising in both boroughs. The StreetEasy Price Index rose 1.6% in Brooklyn, to $713,729, and 4.8% in Queens, to $519,344.
"The combination of a ton of new homes on the market and potential buyers holding out for better deals has shifted the market dynamic in Manhattan further in favor of buyers," said StreetEasy Senior Economist Grant Long. "The modest increase in the number of sales should come as encouraging news to those looking to sell their homes, but it's too early to tell whether this will be an enduring trend. The majority of sellers are still struggling to get their homes noticed."
"It's not just sellers who are put in a tough spot this season," Long said. "We've already started to see the rental market shift over the last few months. While rent increases typically slow this time of year, they're continuing to rise across Manhattan, Brooklyn and Queens, as more buyers get cold feet and decide to remain as renters. That's putting even more pressure on the city's already-burdened rental market."
November 2018 Key Findings — Manhattan
- Prices dropped at the fastest pace since the financial crisis. Home prices fell 3.3% from the prior year to $1,133,988. Homes in the luxury tier (the top 20% of the market) fell 3.6% in price, down to $4,063,872.
- The number of recorded sales rose. The number of home sales increased 2.8% from last year, with 960 Manhattan homes sold in November.
- There were 1,400 more homes on the market than last year. Total sales inventory rose 18.1% annually in the borough — one of the largest increases since the financial crisis, second only to October 2018.
- Rents rose across the borough. The StreetEasy Manhattan Rent Indexiv reached $3,216 — up 2.4% over last year. Rents rose in all five Manhattan submarkets, led by Upper Manhattan, where rents increased 2.4% to $2,376.
- Concessions were harder to find. The share of rentals advertising concessionsv was down by 7.7%age points in Manhattan since last year. Some 14.7% of homes in the borough were offering a concession in November.
November 2018 Key Findings — Brooklyn
- Northwest Brooklyn led the borough in price growth. Prices in Northwest Brooklynvi rose 4.3% annually to $1,100,019 — nearly surpassing North Brooklyn as the borough's most expensive submarket. The overall StreetEasy Brooklyn Price Index rose 1.6% to $713,729.
- Inventory continued to rise. There were nearly 1,000 more homes on the market in Brooklyn than at this time last year. Total inventory rose 20.7% across the borough but fell slightly from the all-time high in October.
- More sellers lowered their price. Price cuts were easier to find in November than a year prior, with the share of sales with price cuts increasing in all five Brooklyn submarkets. Overall, the share of homes with price cuts increased 4.6 percentage points to 12.9%.
- North Brooklyn rents dipped to 2015 levels ahead of the L train shutdown. The StreetEasy North Brooklyn Rent Index dropped 1.1% from last year to $3,054, its lowest level since June 2015. Borough-wide, rents rose 1.7%, reaching $2,596.
- Concessions were hardest to find in Brooklyn. The share of rentals with concessions dipped 9.7 percentage points to 9.2% in Brooklyn, making it the borough with the smallest share of concessions.
November 2018 Key Findings — Queens
- Prices rose steadily across the borough. The StreetEasy Queens Price Index rose 4.8% to $519,344 in Queens. Prices rose in all five submarkets, led by Central Queens, which saw a 6.7% increase in prices to $533,812.
- Sales in Northwest Queens increased significantly. In reaction to Amazon's HQ2 announcement, the number of recorded sales in Northwest Queens — which includes Long Island City — rose 23% over last year to the highest levels since February. Borough-wide, the number of recorded sales increased 10.5%.
- The number of homes on the market nearly matched October's all-time high. Total sales inventory rose 35.1% from last year in Queens. All submarkets saw an increase of more than 25%.
- Rents rose slightly. The StreetEasy Queens Rent Index reached $2,165 — up 1.8%, or $37, from last year. Rents in Northwest Queens, the borough's most expensive submarket, increased the most: up 1.1% to $2,252.
- The share of rentals offering concessions decreased. The share of rentals advertising concessions dropped 6.8 percentage points to 9.9% in the borough — the lowest level since July 2017.