Home prices continue to reach new heights in New York City. According to the Real Estate Board of New York’s (REBNY) New York City Second Quarter 2016 Residential Sales Report, the average sales price in the city was a hefty $1.018 million, largely fueled by a surge in luxury sales.
In each end of the city, inventory has been falling while prices keep making headway. All five boroughs saw prices climb, and NYC as a whole saw a 10 percent increase in prices.
REBNY
But luxury homes weren’t the only ones to see a spike in prices, as the report says the middle segment of the market bumped up 7 percent in the second quarter compared with last year during the same time, to $582,000.
“While high-end Manhattan sales drove up the average sales price, the continuous demand for middle market homes is pulling the median sales price of homes higher as well,” John Banks, III, REBNY president, said in a statement. “In response, the New York City residential sales market started to face some resistance as activity was down compared to last year.”
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In Manhattan, the average sales price for a home jumped a whopping 20 percent and average condo price jumped 21 percent year-over-year in the second quarter to a respective $2,118,000 and $2,843,000. This big jump was helped from sales at 432 Park Avenue, one of Manhattan’s most expensive new condo buildings.
These price increases, however, led to a dip in home sales in many areas of the city. Overall in NYC, there was 11,031 home sales in the second quarter, representing a 2 percent decline from the same time last year. However, in the Bronx and Staten Island, home sales activity was rising.
REBNY
There was a total of 889 home sales in the Bronx in Q2, or 22 percent more than the second quarter of 2015. Staten Island saw a 6 percent rise from last year to 1,027 sales. In total dollar volume, the Bronx saw a year-over-year increase of 28.4 percent, and Staten Island saw a 12.1 percent increase.
While still on the rise, the growth of home sales in Brooklyn slowed in terms of all dollars spent on residential property. The borough saw a mere annual growth of less than one percent in the second quarter, due in part to the average sales price fall of 13 percent in Williamsburg. However, the amount of condo sales rose 43 percent in the neighborhood.
In Manhattan, the average sales price of a condo in Midtown East was a reported $4.929 million as the number of sales increased 27 percent annually in the neighborhood during the second quarter.
Because of the health of the luxury sales market, NYC saw a dollar volume of $11.2 billion in the second quarter of 2016, which is an 8 percent increase over the previous year.
