Manhattan’s median Days on the Market (DOM) in February 2019 hit 117, up 31 days from February 2018 to its highest level in seven years, according to StreetEasy. Street Easy’s Manhattan Price Index also dropped to its lowest level since July 2015.
Prices decreases were not exclusive to Manhattan. Let’s take a look at key take-away’s in Manhattan, Brooklyn and Queens:
The Upper West side saw prices drop the most by -4.4%, the lowest since June 2015. DOM on the Upper East Side increased to 123, 25 days longer than February 2018. Overall, Manhattan saw -2.2% fewer home sales with Downtown Manhattan seeing -7/9% fewer sales.
Inventory for the entire borough in February 2019 saw an uptick of +18.4%. Rents for the entire borough increased +2.5% to $3,209/month while Downtown Manhattan saw rents reach its highest level ever, up +2.5% to $3,730/month.
StreeteEasy’s Brooklyn Price Index for the entire borough increased just +0/6% to $713,513 in February 2019 while East Brooklyn home prices dropped -3.1% to $615,464. Inventory for the entire borough rose +21.9% while Northwest Brooklyn’s inventory topped out at +27.9%. The median DOM increased by 15 days to 90 days while homes in Prospect Park languished for 101 days, two months longer than February 2018.
11.6% of all homes for sale in the borough experienced price cuts while East Brooklyn price cuts spiked to 11.8%, up from 5.7%.
Despite the cancellation if the L Train shutdown, North Brooklyn rents remained fairly stagnant with just a -0.9% decrease at $3,046/month compared with February 2018. Overall, the Brooklyn Rent Index increased +1.8% to $2,593/month. One in ten rentals throughout the borough offered concessions.
StreetEasy’s Queens Price Index increased +4.0% annually to $523,592, indicating slower price growth compared with February 2018. Inventory in Queens soared to +26.5% y/y, the highest inventory growth rate of any borough though houses sold faster than other boroughs with a median DOM of 67. The share of price cuts in Queens increased to +8.8%, up +3.1% y/y.
StreetEasy’s Rent Index indicated an increase of 2.4% y/y.
Like homebuyers in other parts of the country, “…many well positioned New York buyers are willing to walk away from deals that just aren’t financially attractive and continue renting instead,” said Grant Long, StreetEasy’s senior economist. This “walk-away” mentality is “…creating a market poised to punish sellers who don’t price their homes sensibly.” Long continued. “When the inevitable wave of new inventory hits the market this spring, interested buyers should expect to see an uptick in price cuts as the market forces ambitious sellers to accept reality.”