Once again, the New York City market is on an upswing as far as condos and co-ops are concerned. The days of the 2007-08 recession seem to be behind us at last, and professionals don’t foresee that trend changing much in the year ahead. “I don’t see any recession in the real estate market,” says Richard Schulhoff, executive director of the Brooklyn Board of Realtors. “The market is as hot as ever—I’m surprised it’s sustained this level for so long.”
A Look at the Numbers
Michael Slattery, senior vice president for research of the Real Estate Board of New York (REBNY) gives some numbers. “Our latest New York City Residential Sales Report showed that $13.6 billion in citywide total consideration (monetary value for completed home sales transactions) was completed in the third quarter of 2016 for the sale of cooperatives, condominiums, and one- to three-family dwellings. This 15 percent rise from the third quarters of 2015 is the greatest total value of home sales transacted in the five boroughs within one quarter since we began tracking home sales data in 2006.”
REBNY’s third-quarter report breaks this down by borough and by neighborhood. According to the report, “The average sales price of a condo in Manhattan during the quarter was $2,952,000 - a 44 percent increase over the year—while the Brooklyn average sales price increased 14 percent to $1,043,000. The average sales price for a condominium unit in Queens was $568,000 this quarter, a 13 percent increase from last year’s third quarter average.”
As far as co-ops are concerned, “When compared to the third quarter of 2015, the average sales price of a co-op in Manhattan increased two percent to $1,214,000. Brooklyn saw a seven percent increase in the average co-op sales price, rising to $535,000 from the third quarter of 2015, while the average sales price of a co-op in Queens rose three percent to $266,000.” However, the average sales price of a Bronx co-op decreased 4 percent from the year-before figure.
The same reports highlights specific neighborhoods like Midtown East, where the average price of a condo unit increased three times over the previous year; and Flushing, Queens, which saw an increase of 28 percent in the number of condo sales over the same period in 2015. Demand for co-ops on the Upper East Side fell 15 percent, although prices there increased slightly, according to the report. Conversely, the average price of a Williamsburg condo fell 5 percent, but the number of sales in the neighborhood increased 2 percent.