Manhattan vs Brooklyn – The Numbers (Q2 2016)
Curious as to how the numbers stack up in Manhattan and Brooklyn? Here’s an infographic to give you a basic overview, based on Corcoran’s most recent quarterly reports for both boroughs. (Click here to view the full Manhattan Report and click here to view the full Brooklyn Report.) The infographic highlights the median price by apartment type for each type of building covered by the report, and also gives the lowdown for which areas are likely to be your best bets for affordability.
Note – I prefer to use the median rather than the average price because the median represents the middle point – so half of all the listings noted in a given area are above that price and half are below.
Manhattan prices reached a record again, with the median price at $1.15 million, 18% higher than Q1 2015. However, the slowing trend noted in Q1 2016 does not to appear to have been a blip – there were 14% fewer sales closed and 20% fewer contracts were signed in Q2 2016 than occurred in the same quarter one year prior.
Brooklyn’s prices saw continued growth in Q2 2016, with the median sale price at $601,000 – an 8% year over year increase. But like Manhattan, sales are starting to see a slowdown – 17% fewer sales closed and 23% fewer contracts were signed in Q2 2016 than in the same quarter one year prior.
It is, however, important to note that 2015 was a record year for sales, so softening of the market may just be a sign of market stabilization.
Inventory continued to tick upwards in Manhattan – the available inventory of homes in Manhattan was up 11% versus a year ago. Meanwhile, in Brooklyn, inventory contracted slightly by 2% versus Q2 2015.
The predictions for slowed growth in 2016 do seem to actually be panning out, which will be welcome news for buyers who had gotten accustomed to eye-popping price increases throughout 2015. However, it remains to be seen what kind of impact, if any, the recent Brexit vote will have on NYC’s real estate market. There are many who believe that we could see renewed activity (see articles such as this one and this one).
Upper Manhattan, Midtown and the East Side all remain as top picks for buyers to consider in terms of affordability, and the Financial District/Battery Park City area also offers some well priced options. Brooklyn still offers many neighborhoods with great value, but price growth doesn’t seem to show very many signs of stopping, especially deeper into the borough.
If you have more questions about the market, a specific neighborhood or NYC real estate in general (or you know someone who could use some help), feel free to contact me. I’m always happy to help!