BROOKLYN AND QUEENS MAKE STEADY IMPROVEMENTS WHILE AVERAGE NYC HOME PRICES DECLINE
–Despite overall value and transaction losses
REBNY brokers project an optimistic 2012–
NEW YORK, January 11, 2012 – New York City home prices and sales citywide declined since the same time last year reflecting the struggling economy and consumer apprehension according to the Fourth Quarter 2011 Residential Sales Report released today by the Real Estate Board of New York (REBNY). The average sales price of a New York City home decreased by six percent in the fourth quarter of 2011 to $694,000 and the number of sales fell 12 percent compared to the fourth quarter 2010.
Analysis of the report shows that the decline in transaction volume and average sales prices can largely be attributed to seasonal trends with fewer consumers seeking to buy homes in the fourth quarter. Another contributing factor for the loss is that the fourth quarter 2010 saw a higher than average number of sales due to continuing impact of economic stimulus incentives and pent-up demand.
Despite overall losses, Brooklyn and Queens saw significant gains in condominium value. For example, the average sale price of a condominium in Brooklyn was up eleven percent from last year to $596,000. The fourth quarter average price of condos in Williamsburg was 25 percent higher than the average price in the fourth quarter of 2010.
In Queens, condominium sales prices were up six percent to $450,000, and the average price of a condo in Flushing saw an increase in 30 percent from the fourth quarter of 2010 due to a number of closings in a new development in Flushing.
“With weak consumer confidence, an unstable European economy, and general unease with buyers feeling like their equity is diminished, it’s no surprise to see citywide sales and values decline in the fourth quarter,” said Steven Spinola, REBNY president. “Nevertheless, there are bright spots in the boroughs like in Brooklyn and Queens where condominiums have maintained their value and we expect that to eventually ripple out. Also, in our fourth quarter REBNY survey brokers are reporting that they believe the first quarter of 2012 will be an improvement and we should expect to see a pick-up in sales activity.”
REBNY’s Fourth Quarter 2011 Residential Sales Report Highlights
- The average price of a home in Manhattan was down 11 percent from the fourth quarter of 2010 to $1,285,000. Brooklyn, Queens and Bronx prices all declined by one percent to $539,000, $397,000 and $350,000 respectively.
- Manhattan neighborhoods with the most sales activity were the Upper East Side with 468 sales and the Upper West Side with 409 sales.
- In Brooklyn the most sales reported were in Williamsburg with 142 sales and Bedford Stuyvesant with 133 sales.
- Queens neighborhoods with the most sales were Rego Park/Forest Hills/Kew Gardens with 271 sales and Flushing with 266 sales.
- Bronx neighborhoods with the most residential home sales this quarter were Parkchester/Westchester Square/Castle Hills/Soundview with 79 sales.
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About The Real Estate Board of New York
The Real Estate Board of New York is the city’s leading real estate trade association with more than 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the city’s real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors. Please visit us online at www.REBNY.com.