By Colin O'Leary
November 14th, 2018
We're halfway through November and Thanksgiving is approaching us. The big Christmas tree has arrived at Rockefeller Center. The midterm elections are over. The real estate market is still in a state of flux and uncertainty. Right now the city is dealing with high levels of condo inventory brought on by the many new development condos. There has been a sharp drop in the number of closed sales happening year-over-year. These factors have created a buyers market the city hasn't seen in a decade.
According to the real estate data website Urban Digs, Manhattan is showing a nearly 24 % increase in listings available. There may be more properties available this year, but fewer condo deals are happening. Urban Digs shows a decrease of nearly 20% in the number of monthly closed sales year-over-year.
The average price per square foot for a condo in Manhattan is down 6.4% year-over-year to $1,482 per square foot. The median sales price for a condo in Manhattan is $1,640,00, down 3.6% year-over-year. The average time that a condo listing sits on the market before its sold in Manhattan has also increased. According to Streeteasy.com, there are currently 4,118 active condo listings on the market in Manhattan. More than half of all condo listings in Manhattan are brand new developments.
In Brooklyn, according to Urban Digs, the average price per square foot for a condo is down by 7.3% year-over-year to $1,100 per square foot. The median sales price for a condo has gone up though, by 3% year-over-year to $940,000. This could be because Brooklyn has much less supply compared to Manhattan, leading to a more stable market for sellers.
Still, fewer deals are happening in Brooklyn right now compared to last year. The number of monthly closed sales for condos in Brooklyn is down 27% compared to the same time last year. According to Streeteasy.com, there are currently 1,432 active condo listings now on the market.
Condo prices in Brooklyn & Manhattan have risen drastically over the past decade. The peak of the market has already occurred. What we are seeing is an extended market correction. Condo prices may continue to drop minimally for the lower-middle end of the market (under $2,00,000) over the next year. I expect prices on the upper end of the market to continue to drop more drastically because of higher levels of supply.
NEW TO MARKET IN BROOKLYN!
337 Smith Street
Brooklyn, NY 11231
3-unit brownstone investment property
Ground floor retail plus 2 apartments
Coming soon to market!
6-family renovated apartment building
Details coming soon
535 Bainbridge Street
Brooklyn, NY 11233
If you have any questions about what is published in this newsletter or if you are interested in buying or selling a property, please contact me.
Have a safe and wonderful weekend!
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