The New York City real estate market is gearing up for a competitive season with 11 percent less houses on the market in Brooklyn and Manhattan than this same time last year. In upper Manhattan, known to be the least expensive area in the city, there are 25 percent less units for sale. Prospect Park and Northwest Brooklyn, more affordable areas in Brooklyn, saw a sharp decline in homes on the market with 24 percent fewer listings than last year.
New York City can’t seem to put enough homes on the market to meet the ever increasing demand. The asking prices continue to rise as buyers compete with each other for the affordable and desirable locations, giving sellers the upper hand. In Manhattan, listing prices hit a new record high every year. The median price for a home being sold in the city is now just under $1 million, at $993,592. In Brooklyn, prices are rising at an average of 6.3 percent every year, reaching a median sale price of $584,121. Neighborhoods seeing the biggest increase in price over the past year were Tribeca, which now has a median asking price of $4.995 million, NoHo with $4.95 million, and Northwest Brooklyn at $1.29 million. As the cost of living continues to rise in the popular neighborhoods, many people begin to seek out homes in other boroughs. Senior economist for StreetEasy, Grant Long, believes that the job growth in New York City is the cause behind the skyrocketing prices. As the unemployment rate continues to drop, people have more confidence in the economy and market, believing that it is a good time to invest in a home.
Although the price of listings is going up, the rental market remains favorable. This past April, StreetEasy tracked the rent in Manhattan and found that it actually declined 1.1 percent, bringing it to a current median of $3,232. Dipping a significant amount in Brooklyn, the average rent was 3.7 percent lower than last year, which brings the current median to $2,785.
As the price of homes continues to rise in many areas of New York City with the demand severely outnumbering the supply, the market for renters continues to look very favorable. Those looking to move may want to shop around for rentals rather than negotiate in the current economy that strongly favors sellers.
Nonko, Emily. “As Inventory Drops in Brooklyn and Manhattan Resale Prices Hit a Record High.” ny.curbed.com. 1 June 2017. Web. Accessed 15 June 2017.