2014Q2 for Manhattan and Brooklyn: Lack of Inventory Drives Up Prices on Both Sides of the River
The Second Quarter Corcoran Reports for Manhattan and Brooklyn are in!
Here are a few of the key findings for Manhattan:
Inventory Starting to Turn Around. Although the number of properties listed for sale remains very low (52% below the peak in Q1 2009), we are starting to see more of them. Inventory rose for the second quarter in a row.
Limited Supply Buoys Prices. The continuing depressed level of available property kept the market competitive for buyers.
Slower Activity in Bread-and-Butter Sales. In Manhattan, one- and two-bedroom units are the primary drivers of residential sales activity, but they are occurring with decreasing frequency. (see Sales by Price Category, p. 6.)
Luxury Sales Take a Larger Share. Activity at the high end continued to be robust, and grew as an overall percentage of the market. Properties above $3M now account for 12% of sales (up 3% from a year ago), and 26% of available inventory (up 4%).
Price Per Square Foot Sets New Record. The focus on high-end sales drove the average price per square foot for Manhattan real estate up to $1,286.
And meanwhile in Brooklyn:
• Slowing sales. For the third consecutive quarter, there were fewer sales than the prior quarter.
• Rising prices. Tight inventory levels kept the market competitive and caused prices to reach their highest point since the downturn of 2008. The price per square foot in Brooklyn is now $760.
• Condos, luxury property lead the market. A strong appetite for condominiums, townhouses, and high-end property fueled market activity; there were more closings over $2M in Q2 14 than in any prior quarter.
Feel free to contact me with your questions about the Corcoran Report and the Manhattan residential real estate market.