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OVERVIEW: LOWER PRICES AND RISING INVENTORY
- Closed sales declined by 5% annually. Resale co-ops declined a minimal 1% while resale condo and new development sales fell by deeper percentages year-over-year.
- Contracts signed fell year-over-year for their fifth straight quarter, down 6% versus a year ago. Buyers continue to hesitate amid a variety of market and external factors.
- Days on market increased by 5% annually to 116 days on average. This was the most amount of time that apartments have spent on the market in Manhattan, on average, since 2013.
- Inventory rose 6% year-over-year, its smallest annual increase since 2017. Nevertheless, at 6,830 active listings, first quarter inventory was last this high in Q1 2012.
- Median price declined 2% year-over-year, and is now 10% lower than its peak in 2017. Fewer condo sales, a greater percentage of resale co-op sales, prevalent negotiability and price decreases have pushed median price lower.
- Average price per square foot grew 11% year-over-year. This increase, the largest in two years, came as a result of new development closings at the high-end of the market – which pushed the market share of sales over $20M to a record high.
OVERVIEW: FEWER SALES AMID MARKET UNCERTAINTY
- At the start of 2019, Brooklyn buyers faced still-lingering uncertainty in the market surrounding the effects of tax reform, while sellers grappled with downward pressure on prices.
- As a result, the for-sale market registered 9% fewer transactions versus a year ago. However, it’s worth noting that 2018 had the second highest number of transactions of any first quarter in the last ten years.
- Overall sales dipped to 1,279 closings – due to sales of resale condos reaching a six-year low and 19% fewer new development closings.
- However, activity for resale co-ops remained relatively stable, with sales actually improving 2% annually.
- Sales continued to contract in Williamsburg and Greenpoint – while Bedford-Stuyvesant, Crown Heights, Lefferts Gardens & Bushwick doubled market share versus a year ago.
- This dynamic suppressed market-wide median and average price annually for the fourth time in the past six quarters.
- In addition, an 18% annual increase in inventory provided buyers with more choices relative to last year.