East Brooklyn Sales Prices Growing Three Times Faster than Brooklyn

NEW YORK, March 25, 2016 /PRNewswire/ --

Key facts for February 2016:

• Resale prices in the East Brooklyn submarket grew 20.5 percent, more than triple the Brooklyn pace and the largest annual increase across Manhattan and Brooklyn
• Manhattan saw the slowest pace of growth since October 2012, with the median resale price increasing 4.4 percent from last year.
• The median resale price of Manhattan luxury homes fell 0.1 percent from last year to $3,224,589 in February, the only segment of the market to experience a decline in prices
• Sales price growth will continue to slow. According to the StreetEasy Price Forecast, the median resale price in Manhattan is expected to grow only 3.2 percent over the next 12 months, and by less than one percent in Brooklyn.

After years of surging prices, the Manhattan sales market is returning to a more stable rate of growth, according to the February 2016 StreetEasy^® Market Reportsⁱ. The median resale price in Manhattan rose just 4.4 percent in February to $982,437, the slowest pace of growth since October 2012ⁱⁱ.

While the Upper Manhattan submarket continued to see double-digit increases, rising 10.4 percent from last year, it was the East Brooklyn submarket that saw the biggest annual increase in sale prices. Resale prices grew 20.5 percent year-over-year to $473,095 in February, more than three times faster than Brooklyn as a whole. Brooklyn's median resale price rose 6.9 percent from last year to $539,300.

"Affordability is primarily driving homebuyers to East Brooklyn and Upper Manhattan," says StreetEasy data scientist Alan Lightfeldt. "New demand for housing in these parts of the city is a double-edged sword, however. As more buyers search for value in neighborhoods like Bedford-Stuyvesant and Central Harlem, we're going to see prices increase. Heading into the Spring buying season, prospective buyers should expect to encounter fierce competition for dwindling inventory in East Brooklyn and Upper Manhattan."

Leading the market slowdown is Manhattan's luxury market, which continues to adjust to waning demand against the influx of new development units that have come to market over the past two years. The median resale price of Manhattan luxury homes fell 0.1 percent from last year to $3,224,589 in February; the luxury tier was the only segment of the market to experience a decline in annual price growthⁱⁱⁱ.

Over the next 12 months, the Manhattan median resale price is expected to grow by a mere 3.2 percent, according to the StreetEasy Price Forecast^iv. In Brooklyn, the median resale price is expected to grow by less than one percent. This predicted slowdown is particularly notable in the Upper Manhattan and Northwest Brooklyn submarkets, as Upper Manhattan prices are projected to grow at only half the rate of last year, while negative price growth is predicted in Northwest Brooklyn.

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics can be viewed at streeteasy.com/blog/market-reports.

About StreetEasy:
StreetEasy is New York City's leading local real estate marketplace on mobile and the Web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

ⁱ The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.
ⁱⁱ Median resale prices are measured by the StreetEasy Price Indices. Also referred to as the StreetEasy Manhattan Price Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics are monthly indices that track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2005 in Brooklyn. Given this methodology, each Index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Data on sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
ⁱⁱⁱ StreetEasy defines Manhattan luxury homes by separating the StreetEasy Price Index into five price quintiles, or price buckets. The top quintile of recorded sales prices represents the luxury tier, with a price floor of $2.95 million in February 2016.
^iv The Manhattan Price Forecast and the Brooklyn Price Forecast predict the change in resale prices 12 months out from the current reported period. Each forecast incorporates the Price Index for each borough as well as a mix of fundamental market factors including: historical recorded sales price, household income, population, and taxes.

SOURCE StreetEasy

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