Each month I write the O'Leary Market Report to bring you the latest real estate news out of NYC. We are almost a month into fall now. After a warm couple of weeks to start the fall, its finally starting to cool down. The leaves are starting to change colors and its beginning to feel like fall.
The economy is booming. The U.S. unemployment rate fell in September to 3.7%, the lowest since 1969. However, mortgage interest rate have risen slightly, and there is still uncertainty in the New York City real estate market.
In Manhattan, it's a buyers market right now. There's plenty of supply for the top end of the residential market. As a result, sellers are beginning to slash overpriced listings. The change in the SALT cap deduction is on the minds of a lot of buyers and sellers. The median sale price for a condo, co-op, and townhouse have all decreased.
The number of listings on the market as of October 10th, including all condos, co-ops, townhouses, is currently hovering around 7,300. According to the real estate data website Urban Digs, that's a 22% year-over-year.
There's a significant amount of new development inventory that just hit the market. There are currently 2,260 new development listings on the market in Manhattan alone. New construction activity is not slowing down anytime soon. The New York City buildings department issued a record number of permits in 2017. The buildings department has created an online construction map, which tracks every major project (residential & commercial) across the five boroughs in real time. As of October 11th, there are a total of 7,435 active building permits across the five boroughs.
The median sales price of a condo selling in Manhattan as of July was $1,595,000, a price decrease of nearly 12% year-over-year. The median sales price for a co-op was $841,500, faring slightly better at a 2.5% price decrease year-over-year. For townhouses, the median sales price was $4,808,000, down significantly 23% year-over-year.
The number of deals happening in Manhattan has declined since last year. A total of 587 contracts were signed in September, a near 15% decrease year-over-year. Listings are taking longer to sell too. The average time a listing spends on the market in Manhattan is 79 days, an increase of nearly 18% year-over-year.
The sales market in Brooklyn is still a sellers market. Brooklyn, home to over 2.5 million residents, is one of the hottest real estate markets in the world. Over the past decade, Brooklyn has attracted new residents from around the world with its trendy neighborhoods and more affordable prices than Manhattan.
Prices have risen significantly over the past decade in Brooklyn. There is still plenty of demand from buyers, especially on the lower end of the market for the buyers priced out of Manhattan. Developers have taken notice. Construction activity can be seen all over the borough to meet the demand.
According to Urban Digs, the median sale price in Brooklyn for a condo as of July was $987,500, an increase of 6.2% year-over-year. The median sale price for a co-op was $477,500, a decrease of 4.5 % year-over-year. The median sale price for a townhouse was $928,600, a 5.2% increase year-over-year.
According to Zillow, the median home value for all homes in Brooklyn is $786,300 as of September. Home values have gone up 6.6% over the past year in Brooklyn. Zillow is optimistic about the Brooklyn market. Zillow predicts median home values will rise 6.7% over the next year.
Coming soon to market!