Manhattan vs. Brooklyn – The Prices (Q4 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 kind of building covered by the report, and it also gives the lowdown for which areas are likely to be your best bets for affordability. Additionally, especially for sellers, there’s a focus on the median price per square foot for each area.
Note – I prefer to use the median rather than the average 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 continued to cool off even more, with the median price down to $1,024,000, 8% lower than Q4 2015 (and down 2% from the previous quarter). The pace of sales continued to slow down as well – 15% fewer sales closed and 15% fewer contracts were signed in Q4 2016 than occurred in the same quarter one year prior.
Brooklyn’s prices continued their fast march upward in Q4 2016, with the median sale price at $732,000 – an eye-popping 33% year over year increase. But the Brooklyn market has also been more tempered – 26% fewer sales closed and 12% fewer contracts were signed in Q4 2016 versus Q4 2015.
Inventory was up solidly in Manhattan, with the number of available homes up 16% versus a year ago in the borough. Meanwhile, in Brooklyn, inventory was also up – 13% versus Q4 2015.
A lot of real estate experts believe that the “boom times” for the market may finally be over (especially in Manhattan), and we are now entering a period of market stabilization (click here to read more). As reported recently by DNA Info, brokers are saying that they are seeing fewer bidding wars over apartments. Buyers know that the market is starting to tilt a bit more in their favor, so sellers can no longer just name their own price. Sellers will really need to adjust their mindset in order to move their properties quickly.
Absent an outside shock to the system, this year’s market has the potential to be more favorable to buyers. So if you’re on the sidelines, now might be a good time to consider getting back in the game. In Manhattan, Upper Manhattan remains as a bastion of relative affordability. If you’re looking for great deals south of 96th Street, Midtown is going to be your best bet. Year over year price growth is still very healthy in Brooklyn throughout the borough, but a willingness to go deeper into the borough will still yield much lower prices per square foot.
If you have more questions about the market, a specific neighborhood or NYC real estate in general (or you know someone else who could use some help), feel free to contact me. I’m always happy to help!