The New York City residential sales
market continues to be on a streak—but for the wrong reasons.
According to the 2018 second quarter report released by the Real Estate Board of New York (REBNY) last week, the New York City residential sales market recorded an 8.2 percent drop in citywide consideration (monetary value for completed transactions) to $12,259,474,131.
The average sale price for a home (referring to all co-ops, condos, and 1- to 3-family dwellings) in the Big Apple in this most recent quarter was $1,000,000, a 5 percent decline from the same period a year ago. The number of home sales in the city was 12,262, a drop of 4 percent year-over-yer.
The findings for second quarter 2018 marked the fourth consecutive quarter of year-over-year declines in New York City's total residential sales consideration. “The market has not experienced four quarters of consecutive year-over-year decreases since the third quarter of 2009,” said REBNY in its report.
Specifically for New York City condos, REBNY said that the average sale price was $1,707,000 in second quarter 2018, a drop of 10 percent year-over-year. The median sale price of a New York City condo was $916,000, a decline of 8 percent from the same period a year ago. The number of condo sales in the Big Apple was 2,737, a 14-percent year-over-year decline.
To break it down specifically by borough, Staten Island led with the biggest year-over-year positive change in average sale price for condos with 11 percent, while Manhattan condos experienced the largest negative change with 10 percent. For median sale price for condos, the Bronx came out ahead of the other boroughs with the largest positive change with 26 percent compared to the same period a year ago, while Manhattan had the biggest drop with 13 percent. The Bronx also led the boroughs with the biggest jump in the number of condo sales by 32 percent year-over-year.
As far as co-ops go, the average sale price in New York City was $808,000 during second quarter 2018, a 2 percent improvement over second quarter 2017. The median sale price during this period was $455,000, an uptick of 1 percent year-over-year. The number of co-op sales for co-ops was 3,410, a drop of 5 percent from second quarter 2017.
Staten Island co-ops led the boroughs with the largest year-over-year positive change in terms of average sale price with 9 percent; in contrast, Bronx co-ops had the larges decline in average sale price by 3 percent. In the median sale price category for co-ops, Staten Island saw the highest increase by 19 percent, while the Bronx also experienced a negative change of 3 percent, the biggest among the five boroughs. However, the Bronx also had the largest spike in the number of condo sales by 8 percent over second quarter 2017.
In a press statement about the latest findings, John H. Banks, REBNY president, said: “The average sales price adjustments reflected in this report signal a natural cooling off interval after a very hot stretch, and the expansive demand for homes throughout the five boroughs. We have been coming off a period of record high residential sales prices, yet the market is still in a very positive place.”
To read REBNY's complete second quarter 2018 report, click here.
David Chiu is an associate editor at The Cooperator.