Manhattan vs. Brooklyn – The Prices Q4 2015
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 both full reports) 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.
Many have been abuzz about the fact that the median price for an apartment in Manhattan reached its highest level ever recorded – an eye popping $1,100,000. However, even though overall closings were still going strong, the pace of sales slowed as 12% fewer contracts were signed in the fourth quarter versus the year prior.
Brooklyn posted its fifth consecutive quarter of price growth with the median sale price rising 9% versus last year to $545,000. Closings were up 6% year-over-year, making Q4 2015 the most active fourth quarter for sales in Brooklyn in eight years. But, similar to Manhattan, contract signings were down year over year – to the tune of 11%.
Buyers in both Manhattan and Brooklyn should feel a little bit heartened by the inventory situation. The available inventory of homes in Manhattan was up 14% versus a year ago at just over 5,000. In Brooklyn, a 20% increase in new condominium listings lifted the overall inventory incrementally by 3%.
Many experts agree that the slight slowdown in sales and moderate increases in inventory may signal some relief for buyers in the coming year. Prices are likely to continue to increase, but probably not at the breakneck pace that we saw in 2015. Want to hear more about what may be in store for the 2016 real estate market? Then click here to check out my post which features a round up of industry insider predictions.
Upper Manhattan, Midtown, the Financial District and Battery Park City all remain as top picks for places for buyers to consider in terms of affordability. Even though the gap in prices continues to narrow, Brooklyn still offers many neighborhoods with great value, especially if you’re willing to head deeper into the borough.
If you have more questions about the market, a specific neighborhood or NYC real estate in general, feel free to contact me. I’m always happy to help!