Z Zillow Group Inc

NEW YORK, July 29, 2016 /PRNewswire/ -- Brooklyn emerged as more competitive for buyers than Manhattan in the first half of summer. Sales inventory dropped 13.1 percent in Brooklyn, compared to a 1.2 percent inventory increase in Manhattan. Brooklyn homes went into contract eight days faster compared to Manhattan, according to the Q2 2016 StreetEasy® Market Reportsⁱ.  

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 Indicesⁱⁱ. 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.

"As we continue to see prices grow, the appetite for lower-priced homes in New York City is stronger than ever. Compared to Manhattan, much of Brooklyn offers more accessible price-points and buyers are beginning to fan out further into the borough to find something that meets their budget," said StreetEasy economist Krishna Rao. "Buyers turning to Brooklyn should be aware that they may be avoiding sky-high prices, but they are certainly not avoiding competition."

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 Forecastsⁱⁱⁱ, 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.

The complete StreetEasy Market Reports for Manhattan and Brooklyn with additional analysis, neighborhood data and graphics can be viewed at streeteasy.com/blog/market-reports.

About StreetEasy:
StreetEasy is New York City's leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

ⁱ The StreetEasy Market Reports are a monthly overview of the Manhattan and Brooklyn sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan and Brooklyn, with most metrics dating back to 1995 in Manhattan and 2005 in Brooklyn. The reports are compiled by the StreetEasy Research team. For more information, visit http://streeteasy.com/blog/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan and Brooklyn.
ⁱⁱ Median resale prices are measured by the StreetEasy Price Indices. Also referred to as the StreetEasy Manhattan Price Index (MPI) and StreetEasy Brooklyn Price Index (BPI), the metrics are monthly indices that track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2005 in Brooklyn. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Data on sales of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-streeteasy-price-indices/
ⁱⁱⁱ The Manhattan Price Forecast and the Brooklyn Price Forecast predict the change in resale prices 12 months out from the current reported period. Each forecast incorporates the Price Index for each borough as well as a mix of fundamental market factors including: historical recorded sales price, household income, population, and taxes.

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SOURCE StreetEasy