Happy New Year! 2014 was indeed a very good year for NYC real estate. Below is a recap of where we stand in Manhattan and Brooklyn and a link to the 4th Quarter Corcoran Reports to offer further insight into these extraordinary markets:
Manhattan:
- Inventory challenges. Inventory has grown by 20% since last year, but almost entirely on the basis of condo availability and the introduction of significant high-end new development product. The number of co-op listings has remained flat since Q2 2011, and the market is significantly under-supplied below $2M.
- Contract signings are up. Signed contracts rose 3% versus last year. A lack of affordable inventory sent buyers to the co-op market. Co-ops accounted for 58% of signed contracts, their highest share since Q3 2009.
- High-end sales helped value reach new peak. Thanks to activity at the high-end, the average price per square foot increased to $1303, up 6% versus Q4 2013.
Brooklyn:
- Strong demand but short supply. Brooklyn is experiencing a classic seller's market in which there are not enough listed properties to feed demand from buyers. Thanks to the inventory shortage, transactions fell 4% versus Q4 13. At the same time, prices rose to their highest point in seven years; the price per square foot in Brooklyn is now $789, up 15% from the prior year.
- Fewer new developments. The number of new developments available in Brooklyn shrank, but their absence did not dampen enthusiasm for the borough nor the upward trend of prices.
- Dramatic price growth south and east of Prospect Park. Many areas held or modestly gained in value, but neighborhoods like Bedford-Stuyvesant, Bushwick, Crown Heights, Kensington, and Windsor Terrace enjoyed dramatic increases as buyers in search of affordable, quality properties competed for home purchases there.
