Q3 2019 Manhattan and Brooklyn Sales Market Report

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OVERVIEW:

• Closed sales declined by 4% annually, as sales that would have likely closed this quarter did so in second quarter due to the July 1 tax hike.
• Contracts signed fell by a relatively small percentage for the second quarter in a row, down just 2% from last year.  Contract activity was up slightly in July, stable with last year in August, but declined in September.
• Days on market increased by 14% annually to 112 days on average. This was the most amount of time that Manhattan apartments have spent on the market since 2013.
• Supply rose by its smallest percentage since 2017, up 3% year-over-year. Nevertheless, third quarter inventory was last higher in 2011.
• Median price fell by its greatest percentage since 2009, down 8% annually to $1.010M, a four-year low.  A significant 25% drop in sales over $2M forced the median lower.
• Average price-per-square-foot fell to its lowest level since First Quarter 2014. The average drop is a result of fewer sales over $2M, especially in prime locations, and a greater share of closings being of resale co-ops.

OVERVIEW:

• A variety of factors impacted the Brooklyn market during Third Quarter 2019 including uncertainly following the state mansion and transfer tax increases that took effect on July 1st.
• For Brooklyn buyers seeking value, constrained inventory continues to hinder sales activity.  Overall inventory rose however, due mainly by new development units.  In fact, new development supply increased two-and-a-half times faster than resale inventory.
• In total, there were 1,450 closings during Third Quarter 2019, which was 5% lower than a year ago and the fifth consecutive quarter of annual sale declines.
• Overall average price was unchanged versus last year, while overall median price fell by just 3%.
• However, resale condo prices remained high – and this quarter the median price was the second highest seen in over ten years.
• The new development median price, on the other hand, reached its second lowest point since 2016 – as new product under $750,000 appealed to buyers.
• Meanwhile, the median co-op price reached a ten-year record high, which caused a 6% decline in sales versus last year.

 

 

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September & Q3 2019 Manhattan and Brooklyn Rental Market Report

Contact me here to discuss any upcoming vacancies and/or pricing of your apartments, or the purchase and sale of  a multifamily property.

PRICING TRENDS

• In September 2019, rents for Manhattan studios continued to rise – an average of 1% – when compared to August.  However, the trend of higher rents reversed for other apartment categories in the borough.  Pricing for one-, two- and three-bedroom homes all declined by 1%. 

• In Brooklyn, rents were down across the board month-over-month. Pricing for studios was down 2%, while rents for one-, two-, and three-bedroom units all decreased 1% on average.

• While rents have recently stabilized, pricing has climbed in both communities year-over-year.  Overall, rents rose an average of 5% in Manhattan – and 8% in Brooklyn – since September 2018.

VACANCY

• After falling steadily for six straight months (from December 2018 to June 2019), the vacancy rate has been on an upswing.  This – in part – is a response to record-high apartment rents.  From its low of 1.02% in June, inventory has climbed for the last three months – reaching 1.27% in September.

• However, the vacancy rate remains lower than it was at this time last year.  In September 2018, 1.36% of apartments were vacant.

CONCESSIONS

• The percentage of leases that included a move-in incentive rose to 27% in September, from 24% in August.  In contrast, year-over-year their use declined slightly (from 28% in September 2018). 

• When comparing boroughs, concessions continue to be much more prevalent in Brooklyn.  In September, 44% of leases in the borough included an incentive, versus 17% in Manhattan. 

*****

“The city’s rental market remains strong, but cooled slightly as we entered fall.  Inventory crept up in September and some great incentives are still in play, especially in new buildings.  All things considered, the coming months may be a great time for tenants who have been sitting on the sidelines – to get in the game.”

• Gary Malin, President of Citi Habitats

 

August 2019 Manhattan and Brooklyn Sales Market Report

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Manhattan Trends:

• Compared to last year, August 2019 contract activity diverged for condominiums and co-ops, rising 10% for condominiums – but declining 8% for co-ops.
• Average sale price and average price-per-square-foot both decreased year-over-year.  falling most for co-ops.
• However, median sale price rose for both condominiums and co-ops, up 5% and 6% respectively.
• Listed inventory for condominiums and resale co-ops grew versus last year, up 10% and 7% respectively.
• Despite the increase in inventory, average days on market for condominiums declined 20% year-over-year… yet it increased 35% for co-ops during the same time period.
• The discount from asking price to final sales price was 3.9% on average for condominiums and 3.5% for co-ops.

Brooklyn Trends:

• In August 2019, contract activity fell 6% compared to last year, the smallest annual decline in sales since May 2018.
• However, this was the lowest sales figure for August in Brooklyn since 2014.
• Compared to last year, price statistics rose across the board, driven higher more sales above $1 million – and increased activity in northern and western sections of the borough.
• Median sale price increased the most, up 26% year-over-year – while average price increased 3% year-over-year.
• Days on market decreased 21% year-over-year… to 84 days on average.

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August 2019 Manhattan and Brooklyn Rental Market Report

Contact me here to discuss any upcoming vacancies and/or pricing of your apartments, or the purchase and sale of  a multifamily property.

• In August 2019, the average monthly rental price for a Manhattan studio was $2,632. For one-bedroom homes, the average was $3,534.  For two-bedrooms, the average rent was $4,462.  Finally, the average three-bedroom apartment rented for $5,985.    
• Brooklyn studio apartments (in the 14 neighborhoods studied) rented for $2,559 per month on average.  For Brooklyn one-bedrooms, the average rent was $3,166 – while rents for two- and three-bedrooms clocked in at $4,223 and $5,528
• In August, the Manhattan vacancy rate was 1.17% – up from July’s rate of 1.11%.  This is the second consecutive month where inventory increased, which is unusual for the summer season.
• When examining concessions, 24% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants in August – down slightly from 26% in July.  These move-in incentives continued to be much more prevalent in Brooklyn, where they were found on 40% of leases, than in Manhattan (@ 16% of leases).

*****

“Overall, landlords continued to have the upper hand in the city’s rental market during the August ‘busy season.’  Rents climbed across the board in both Manhattan and Brooklyn – and owners reduced their use of move-in incentives,” explained Gary Malin, President of Citi Habitats.  “While the vacancy rate is still comparatively low, the resulting uptick in inventory shows just how fragile the market is for renters.  If they can wait it out, apartment-seekers may face less daunting conditions in the coming months.  In fall, there is traditionally less demand – and more value to be had for tenants.”

 

July 2019 Manhattan and Brooklyn Sales Market Report

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Manhattan Trends:

• Contract activity in July 2019 diverged for co-ops and condominiums, improving by 8% for co-ops… but declining 1% for condos compared to last year.
• All condo and co-op price figures decreased year-over-year, with median sale price falling most for condos and average sale price falling most for co-ops.
• Listed inventory for condos and resale co-ops increased versus last year, up 9% and 7%, respectively.
• In tandem with the rise in inventory, average days on market for condos and co-ops increased 30% and 27% year-over-year, respectively.
• Negotiability rose for condos – to a 4.5% average discount, but remained lower for co-ops – at a 2.2% average discount from last ask.

Brooklyn Trends:

• In July 2019, contracts signed fell 8% compared to last year – to 293 total sales.
• Although this decline was exaggerated due to a strong July 2018, the number of sales this year were nevertheless at their lowest level for July since 2014.
• Compared to last year, price statistics fell across the board – driven lower by fewer sales over $4M and less activity in prime neighborhoods.
• Average sale price decreased the most, down 13% year-over-year, while median price fell 8% year-over-year.
• Days on market increased 16% year-over-year to 98 days on average, the highest July reading in six years.

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10 Year Upper West Side Condo & CO-OP Sales Reports

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10 Year Upper West Side Condo & CO-OP Sales Reports are now available and may be accessed below;

Condo Report

Co-op Report

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July 2019 Manhattan and Brooklyn Rental Market Report

Contact me here to discuss any upcoming vacancies and/or pricing of your apartments, or the purchase and sale of  a multifamily property.

• In July 2019, the average monthly rental price for a Manhattan studio was $2,617. For one-bedroom homes, the average was $3,434.  For two-bedrooms, the average rent was $4,408.  Finally, the average three-bedroom apartment rented for $5,927.   
• Brooklyn studio apartments (in the 14 neighborhoods studied) rented for $2,538 per month on average.  For Brooklyn one-bedrooms, the average rent was $3,142 – while rents for two- and three-bedrooms clocked in at $4,159 and $5,383 respectively
• In July, the Manhattan vacancy rate was 1.11% – up from June’s rate of 1.02%.  This is the first time the vacancy rate has increased – after falling steadily for six consecutive months.
• When examining concessions, 26% of rental transactions brokered by Citi Habitats offered a free month’s rent and/or payment of the broker fee to entice new tenants in July – up slightly from 25% in June.  These move-in incentives continued to be much more prevalent in Brooklyn, where they were found on 42% of leases, than in Manhattan (@ 19% of leases).

*****

“Rents in Manhattan and Brooklyn climbed to new heights in July.  However, this higher pricing caused an uptick in the vacancy rate, which is unusual for summer,” explained Gary Malin, President of Citi Habitats. “In the interest of affordability, many renters became more flexible in terms of neighborhood, or postponed their search to when conditions will be more tenant-friendly. With tenants’ budgets stretched to the limit, even the smallest rent increases can have a big impact.”

 

June & Q2 2019 Manhattan and Brooklyn Rental Market Report

Contact me here to discuss any upcoming vacancies and/or pricing of your apartments, or the purchase and sale of  a multifamily property.

PRICING TRENDS

• When looking at the most recent data for June, we found that month-over-month, rents rose for all apartment categories in both Manhattan and Brooklyn.
• Rents also climbed across the board in both boroughs year-over-year.  Overall, rents rose an average of 7% in Manhattan – and 5% in Brooklyn – since June 2018.

VACANCY

• In June, the vacancy rate fell to 1.02% – from 1.08% in May.  In fact, the last time there was less inventory available for rent was in June 2012 (exactly seven years ago), when the vacancy rate dipped to 1.01%
• The rate is also lower than it was at this time last year.  In June 2018, 1.32% of apartments in the borough were vacant.

CONCESSIONS

• The percentage of leases that included a move-in incentive fell to 25% in June, from 28% in May.  Year-over-year, their use also declined (from 27% in June 2018).

• When comparing boroughs, concessions continue to be much more prevalent in Brooklyn.  In June, 39% of leases in the borough included an incentive, versus 17% in Manhattan.

*****

“The summer season is in full swing, and rental housing is in strong demand.  The vacancy rate has fallen for six consecutive months, and has reached a seven-year low.  While their use is down considerably, move-in concessions remain an important tool in this busy, but price-sensitive, marketplace.  They are an effective way for owners to keep their face rents high, while still providing a sense of ‘value’ to apartment-seekers.”

• Gary Malin, President of Citi Habitats

 

Q2 2019 Manhattan and Brooklyn Sales Market Report

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OVERVIEW:

• Closed sales rose 5% annually, the first year-over-year increase in sales since 2017. New development closings pushed sales higher, as resales weathered another drop in sales.
• Contracts signed fell a minimal 1% versus last year to 3,083. Signed contracts spiked in April, likely due to changes in state transfer and mansion taxes, but fell year-over-year in both May and June.
• Days on market increased by 18% annually to 132 days on average. This was the most amount of time that Manhattan apartments have spent on the market in six years.
• Inventory rose 15% year-over-year to 8,174 units, the first time that the Manhattan market has surpassed 8,000 listings since 2011. Fewer signed contracts and more new development building launches pushed supply levels higher.
• Median price rose for the first time in five quarters, up 11% annually to a record high.  Fewer resales and more development sales pushed the market share of closings into higher price ranges this quarter.
• Average price-per-square-foot was essentially unchanged with last year. Drops in in average resale price per square foot were offset by the year-over-year increase in new development sales, which generally trade at a premium to resale co-ops and condos.

OVERVIEW:

• Although Brooklyn sales fell short of last year’s best spring season on record, Second Quarter 2019 was still relatively strong.
• Over 1,500 apartments closed between April and June, one of the highest recorded sales figure for any second quarter in the past decade.
• The difference this quarter versus prior second quarters, is that new development sales comprised their highest share of closing figures in seven years, yet most of these contracts were signed in earlier years.
• Closings in the resale market, a more direct snapshot of recent sales activity, underperformed and reached a six-year low.
• Yet, despite the easing sales activity, which caused inventory to increase by 11%, properties that did sell did so with fewer days on market than last year.
• A few signs of strength in the Brooklyn market emerged this quarter, including increased sales across all product types in the $1M to $2M price range.  Nearly one-quarter of all buyers transacted in this price segment, the highest share on record.
• Overall average and median price rose to its highest point since early 2017 and notably, the resale condo median price figure set a new record.

 

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May 2019 Manhattan and Brooklyn Sales Market Report

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Manhattan Trends:

• In May 2019, the volume of condo sales was 9% lower compared to last year – while co-op sales fell 10% during the same period.
• Price statistics declined for each apartment type. Overall condo and co-op average and median price figures dropped year-over-year – as the number and market share of sales over $3 million declined.
• Listed inventory for condos and co-ops increased 6% and 9% year-over-year, respectively.
• Average days on market subsided slightly for condos, but rose among co-ops versus this time a year ago.
• Negotiability remained the norm for both product types, with condos averaging a 3.4% discount and co-ops reaching a 2.4% discount from last ask.

Brooklyn Trends:

• In May 2019, median price rose 6% year-over-year, driven by an increase in the market share of sales over $1 million versus last year.
• However, average sale price remained essentially flat, up 1% year-over-year, due to fewer deals at the top of the market over $4 million.
• Nevertheless, average price-per-square-foot still rose 3% year-over-year, due in large part to a 13% increase in pricing (per sq. ft.) for 3+ bedroom homes.
• Contract activity fell 18% compared to last year as low buyer confidence continues throughout the market.  The market uncertainty was also reflected in the 18% year-over-year increase in days on market versus May 2018.
• The number of additional new listings increased 3% compared to last year and rose 12% compared to April 2019.
• As inventory rose amid lower demand, average negotiability increased nearly 2% year-over-year.

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