Sales of homes in the New York City market dropped 16% in the first quarter of 2018 compared to a year earlier; the third straight quarterly decline.
It’s the first time the market has seen monetary values decline for three consecutive quarters (year-over-year) since 2009, the Real Estate Board of New York reported.
The drop of $2 billion to $10.3 billion was despite record high average sales prices for coops in Manhattan and Queens; and one-to-three family dwellings in the Bronx, Staten Island, and Queens.
In the first quarter of 2018, home sales volume decreased 10% to 10,869 transactions citywide with sales of Manhattan homes $3 million dollars and above down 30%. The largest decline in sales by price range was the $5 million and above category in which the number of sales fell 37% year-over-year.
“The declines in consideration and transactions are largely attributable to a slowdown in sales activity at the high end of the Manhattan market,” said John H. Banks, REBNY President. “Demand has remained strong in other important market segments as demonstrated by several new average sales price records set for cooperative units and one-to-three-family dwellings throughout the boroughs.”
The total number of home sales fell 20% to 2,417 in Manhattan; 15% to 2,466 in Brooklyn; 9% to 1,338 in Staten Island; and 4% to 3,650 in Queens.
The highs that offset the lows
The Bronx bucked the trend with an increase of 8% to 998 in the first quarter of 2018.
Citywide, the average sales price of a New York City cooperative unit was $791,000 this quarter, up 11% year-over-year.
In Manhattan, the average sales price for a coop rose 11% to a new record of $1,308,000, while in Queens, the average sales price for a coop increased 13% to a new record of $310,000 in the first quarter of 2018.
The average sales price for a one-to-three family dwelling in New York City was also $791,000 this quarter, a 2% increase from the first quarter of 2017.
All-time high average sales prices for one-to-three family dwellings were recorded in: Queens, (up 6%) to $717,000; the Bronx, (up 7%) to $517,000; and Staten Island, (up 9%) to $563,000 year-over-year.
But this sector’s prices fell sharply
Decreasing 20% year-over-year, the New York City condominium average sales price was $1.56 million in the first quarter of 2018. This was driven by the Manhattan condo average sales price, which dropped 17% to $2,508,000 from an all-time high average sales price of $3,032,000 in the first quarter of 2017.
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