NEW YORK, May 27, 2020 /PRNewswire/ -- April is typically
the most popular month for sellers to list their homes on the
New York City market, with 5,095
added in the month last year. This year, however, with NYC an
epicenter of the global coronavirus pandemic, only 717 new homes
came on the market — an 85% decline from 2019, according to the
StreetEasy Market Reports[i].
As the pandemic hit New York
City, many would-be home sellers avoided the market
altogether, likely opting to wait for buyer demand to return. The
drop of more than 4,300 homes from 2019's new inventory level also
translated to a sharp drop in the share of price cuts being offered
by sellers. In Manhattan, only
2.1% of homes for sale had a price cut in April – a drop of 12.2
percentage points from last year, and a record low for the
borough.
However, the 2.1% of sellers that were making price cuts in
April were determined to make a sale. The median price cut in
Manhattan was a record high 5.9%
off the asking price, or a median of $100,241. The highest median price cut previously
observed in Manhattan was 5.4%, in
January 2016.
Driven sellers were also taking steps to make their homes stand
out in this uncertain time. In April, 132% more listings included a
walkthrough video or a 3D Home® tour compared to March, showing
that sellers are working to adapt to the stay-at-home order and
public health protocols.
"Most New Yorkers who don't absolutely need to buy or sell right
now simply aren't doing so," says StreetEasy Economist Nancy Wu. "The massive drop in inventory shows
us that the majority of would-be sellers can wait, and are opting
to do so to avoid any pressure to make price cuts."
"Even so, there are still highly motivated sellers on the market
right now. Those that bought a new home just prior to the pandemic,
or need to move for employment opportunities or growing families,
are doing whatever they can to get their existing homes off the
market – including offering higher discounts."
See below for additional sales and rental market trends across
Manhattan, Brooklyn and Queens.
April 2020 Key Findings —
Manhattan
Manhattan prices continued to
drop in April, a trend that has been occurring for the past three
years. The StreetEasy Manhattan Price Index[ii] fell 2.7%, to
$1,075,366. In Upper Manhattan[iii],
the borough's least-expensive submarket, prices rose 5.0% to
$656,383 — the only increase seen
across the borough. The StreetEasy Manhattan Rent Index[iv], which
is based on prices of repeat rental units in NYC, increased to
$3,308, up 2.5% from last year, which
was the slowest pace of growth seen in 2020 thus far. Due to the
coronavirus pandemic, the rentals market was coping with major
disruptions in April, and it's possible that we may see rent price
growth continue to slow.
April 2020 Key Findings —
Brooklyn
Prices in Brooklyn fell at the
fastest pace since August 2019, with
the StreetEasy Brooklyn Price Index down 1.8% to $689,989. New sales inventory in the borough hit
the lowest level in seven years, with 247 homes coming onto the
market. Rents continued to climb, as they did before the
coronavirus pandemic. In April, the StreetEasy Brooklyn Rent Index
hit a record high $2,755 — up 4.8%
from last year.
April 2020 Key Findings —
Queens
Borough-wide, prices in Queens
stayed flat at $510,345. Prices rose
3.0% to $791,203 in Northwest
Queens[v], the borough's most expensive submarket, but at the
slowest pace of 2020 thus far. New inventory fell 82.3% in the
borough — with just 156 homes listed on the market in April —
following the citywide trend. The StreetEasy Queens Rent Index
increased to $2,209, up 3.2% from
last year.
View all StreetEasy Market Reports for Manhattan, Brooklyn, and Queens, with additional neighborhood data and
graphics. Definitions of StreetEasy's metrics and monthly data from
each report can be explored and downloaded via the StreetEasy Data
Dashboard.
About StreetEasy
StreetEasy is reimagining the way people buy, sell, and rent
homes in New York City and
New Jersey. Used more than any
other local real estate platform, StreetEasy's website and mobile
apps provide vetted and verified listings, plus intuitive search
tools and data-driven guides to help people unlock the opportunity
of living here. Consumers and real estate professionals can stay
up-to-date on the latest real estate trends through StreetEasy's
Market Reports and explore and download market data for free on the
StreetEasy Data Dashboard. Launched in 2006 and based in NoMad,
Manhattan, StreetEasy is owned and
operated by Zillow Group (NASDAQ: Z and ZG) and is a registered
trademark of Zillow, Inc.
[i] The StreetEasy Market Reports are a monthly overview of
the Manhattan, Brooklyn and Queens 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, Brooklyn and Queens, with more than a decade of history for
most metrics. The reports are compiled by the StreetEasy Research
team. For more information, visit
https://streeteasy.com/blog/research/market-reports. StreetEasy
tracks data for all five boroughs within New York City, but currently only produces
reports for Manhattan,
Brooklyn and Queens.
[ii] The StreetEasy Price Indices 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 2007 in Brooklyn and Queens. 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. Levels of
the StreetEasy Price Indices reflect average values of homes on the
market. Data on the sale of homes is sourced from the New York City
Department of Finance. Full methodology here.
[iii] The Upper Manhattan submarket includes Hamilton
Heights, Washington Heights,
Inwood, West Harlem, Central
Harlem, East Harlem, Manhattanville and Marble Hill.
[iv] The StreetEasy Rent Indices are monthly indices that
track changes in rent for all housing types and are currently
available from January 2007 in
Manhattan, January 2010 in Brooklyn, and January
2012 in Queens. Each index
uses a repeat-sales method similar that used to calculate the
StreetEasy Price Indices. The repeat method evaluates rental price
growth based on homes in a given geography that have listed for
rent more than once. More details on methodology here.
[v] The Northwest Queens submarket includes Astoria, Long Island
City, Sunnyside and
Ditmars-Steinway.
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SOURCE StreetEasy