SOURCE: Real Estate Board of New York (REBNY)

Real Estate Board of New York (REBNY)

October 15, 2013 10:30 ET

Report: NYC's Residential Sales Market Values Hit Six-Year High

City's Only Five-Borough Market Report Shows Highest Total Consideration Since 2007

NEW YORK, NY--(Marketwired - Oct 15, 2013) - New York City's residential sales market witnessed a six year-high in sales values, or total consideration, in the third quarter as rising interest rates on mortgages and increased competition continued to encourage buyers to act briskly and decisively.

Total consideration, the total dollar value of all home sales in the five boroughs, was $11.3 billion in the third quarter, an increase of 32 percent compared to the third quarter of last year and up 38 percent from the last quarter, according to the Real Estate Board of New York's (REBNY) Third Quarter New York City Residential Sales Report released today.

The third quarter marked the highest total residential sales consideration New York City has recorded since 2007.

Manhattan's total consideration was $6.6 billion last quarter, an increase of 30 percent from the third quarter last year and 38 percent from the second quarter. Brooklyn, with the second highest total for the boroughs, had $2.2 billion in total consideration for residential sales, 31 percent higher than the third quarter of last year and 43 percent greater than last quarter.

The rise in sales values appears to be the result of mortgage rates creeping up through the quarter and uncertainty about their future direction. Also, residential rents, which continue to be high, show no sign of receding, making a stronger case for home ownership.

"With uncertainty in the mortgage markets, buyers now have to become more firm in their decision to buy," says Steven Spinola, President of REBNY. "Mortgage rates are still near historical lows, so the attractiveness of buying should remain into the next quarter."

Citywide home sales volume for all homes (which includes cooperatives, condominiums and one-to-three-family dwellings) increased 28 percent to 14,073 transactions compared to last year. The median sales price of a home citywide increased four percent from the third quarter last year and the previous quarter to $515,000. The average sales price rose three percent citywide in the third quarter to $806,000.

This was also the second consecutive quarter where increased activity in the market was not focused only in the Manhattan apartment market and prime Brooklyn areas. Sales in both Brooklyn and Queens for one-to-three family dwellings were at post-recession highs of 1,888 and 2,409 respectively.

Apartment sales were particularly strong in certain neighborhoods of the city that offer a wider variety of inventory in terms of design, style and price. For instance, the average sales price of a cooperative unit on the Upper East Side during the third quarter increased eight percent to $1.5 million compared to the third quarter last year and the number of sales in the neighborhood increased a whopping 44 percent over the same period to 778.

In Flushing, Queens, the number of condo sales more than doubled to 192 in the third quarter compared to last year and the average price for a condo rose 14 percent to $508,000 during the same period.

Sales of homes over $10 million increased from 22 in the previous quarter and 27 in the third quarter of 2012 to 34 this quarter.

REBNY's Third Quarter 2013 Residential Sales by Neighborhood:

  • Manhattan neighborhoods with the most home sales this quarter were: the Upper East Side (1,075 sales), the Upper West Side (840), Midtown East (358), Midtown West (311), Gramercy/Kips Bay (283) and Chelsea/Flatiron (279).
  • Brooklyn residential home sales activity was focused in Bedford Stuyvesant (250), Park Slope (230), East New York/Spring Creek (167), Gravesend/Mapleton (165), Bay Ridge/Fort Hamilton (157), and Bushwick/Wyckoff Heights (139).
  • Queens neighborhoods with the most home sales were: Flushing (539), Rego Park/Forest Hills/Kew Gardens (463), Jackson Heights/Elmhurst (286) and Richmond Hill/South Ozone Park/Woodhaven (286).
  • Bronx neighborhoods with the most residential home sales this quarter were Riverdale/Fieldston (132), Parkchester/Westchester Square/Castle Hill/Soundview (110 sales), City Island/Pelham Bay/Pelham Strip/Country Club/Throgs Neck/Schuylerville (98), and Woodlawn/Williamsbridge (84).

REBNY's report is the most comprehensive quarterly review of recorded transactions and includes data from all five boroughs.

For the full report please visit here or REBNY's exclusive home listings web site, NY1Residential.com.

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 13,000 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.

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