Brooklyn real estate more competitive than ManhattanStaff Writer | July 29, 2016
Brooklyn emerged as more competitive real estate market for buyers than Manhattan in the first half of summer.
Real estate Inventory in Brooklyn fell 13.1 percent year-over-year
A double-digit inventory decline in Brooklyn was driven by the South Brooklyn and East Brooklyn submarkets last quarter. Both submarkets experienced the greatest annual decrease in sales inventory among all submarkets, falling 25.5 percent and 10.9 percent, respectively.
Subsequently, competition in the borough is rising as a dwindling pool of homes are selling more quickly. Brooklyn homes sold in a median of 41 days in the second quarter, eight days faster than homes in Manhattan.
In Manhattan, inventory increased slightly, up 1.2 percent since last year. The rise in available units can be chiefly attributed to the Downtown submarket, with an inventory increase of 8.6 percent.
Homes in the borough went into contract in a median of 49 days in the second quarter, with homes in the Downtown and Midtown submarkets moving the slowest, at a median of 51 and 55 days, respectively.
Manhattan's median resale price experienced its fourth consecutive quarter of slowing annual growth, up only 2.8 percent to $995,522, according to the StreetEasy Price Indices.
The Upper Manhattan submarket increased the most year-over-year at 7.1 percent, followed by Midtown (4.6 percent), Upper East Side (3 percent) and Upper West Side (1.9 percent).
Brooklyn's median resale price increased 5.9 percent since last year to $561,438. Though still exceeding price growth in Manhattan, this quarter marks Brooklyn's slowest annual growth since December 2012.
East Brooklyn continues to lead the pack with 13.7 percent growth since last year. In fact, it is the only submarket across both boroughs to see a double-digit price increase over this time period.
In another sign of heightened competition, approximately half of all Brooklyn neighborhoods had a median sale-to-list price ratio of 100 percent or above, meaning sellers in most Brooklyn neighborhoods received at least their full asking price in the second quarter.
These neighborhoods were mostly concentrated in the East Brooklyn, Northwest Brooklyn and Prospect Park submarkets.
Brooklyn's overall median sale-to-list price ratio was 98.4 percent, with sellers receiving just 1.6 percent less than their initial asking price. Manhattan sellers received a median of 98.2 percent of their asking price, led by the Upper Manhattan submarket at 100 percent.
According to the StreetEasy Price Forecasts, sales price growth in both boroughs will continue to slow over the next 12 months.
Price growth in North Brooklyn is expected to increase the most at 8.6 percent and it is the only submarket in the borough where resale price is forecasted to exceed $1 million. The borough's median sales price is expected to increase 4.2 percent over the next year.
In Manhattan, price growth in the Downtown submarket is predicted to be flat, with Upper Manhattan and Midtown to have the highest annual growth in the borough at 5.1 and 4.5 percent, respectively. Manhattan's median resale price is expected to increase 1.9 percent to $1.01 million. ■