The performance of the Brooklyn and Queens residential markets during second quarter 2019 can simply be summed up as this: rising median sales prices and declining number of sales.
According to new 2Q 2019 reports released by Douglas Elliman, the median sales price for homes in Brooklyn (consisting of co-ops, condos and 1-3 family residences) during the second quarter of 2019 was a record-setting $815,000--up 4.5 percent year-over-year. However, the number of sales fell 4.5 percent to 2,561, marking the sixth straight quarter of a drop in sales.
Broken down by property type, the median sales price for Brooklyn condos was $923,500, a 7.4 percent uptick. The number of condo sales in that same borough was 831, an increase of 1.0 percent over second quarter 2018. Meanwhile,the median sales price for Brooklyn co-ops was $462,500, a positive change of 8.1 percent year-over-year—while the number of sales was 493, a decline of 4.6 percent.
For the Queens residential market during second quarter 2019, the median sales price peaked at $572,000, a 2.5 percent increase from the same period last year. And similar to Brooklyn, Queens experienced a decline in total sales down to 3,022, a 11.7 percent drop. Elliman said that this was the seventh straight quarter of year-over-year decline in sales.
Upon further examination of Elliman's report, Queens condos saw a 12.9 percent drop in median sales price to $575,000 compared to second quarter 2018. The number of condos in the borough was 256, a 39.5 percent dip. In contrast, Queens co-ops experienced a rise in median sales price, specifically 6.6 percent to $299,000. There was a total of 803 sales for co-ops, a 3.9 percent dip.
Elliman also surveyed the Riverdale market, in which the median sales price was $313,500, a 1.1 percent rise year-over year (continuing that trend for the fifth straight quarter, Elliman noted), while the number of sales dropped 29.1 percent to 100. The median sales price for Riverdale co-ops was $277,500 and the number of sales fell 28.1 percent to 82. Meanwhile, condos in Riverdale experienced a 5.9 percent rise in median sales price at $508,100, while total sales were down 71.4 percent to two.
In a statement about the study's findings, Steven James, President and CEO of New York City, Douglas Elliman, said: “Brooklyn continues to outpace Manhattan and prices there continue to rise to record-setting highs,” said “Even though sales declined again this quarter, they are still 22 percent above the 10-year average. The trends in this market are definitely not weak, and it will be interesting to see if sales pick up as we head towards the fall.”
Jonathan Miller of Miller Samuel Inc., which prepared the market reports, explained in the same statement: “We’re seeing a general pattern of rising prices and declining sales across Brooklyn, Queens and Riverdale. Even with the continued decrease in sales, these outer borough markets are still moving at a fast pace, with Brooklyn and Riverdale both out-pacing Manhattan.”
Last week, Elliman unveiled its 2Q 2019 Manhattan market report, which stated co-op and condo sales in the borough rose 12.5 percent year-over-year.
David Chiu is an associate editor at The Cooperator.