Q4 2014 REAL ESTATE MARKET REPORT - Rutenberg - The Smart Brokers

Q4 2014 REAL ESTATE MARKET REPORT

          The Federal Reserve Beige Book reports that construction and real estate activity expanded across the country in the fourth quarter of 2014, and banks re­ported steady demand for consumer and residential mortgages. New York City’s co-op and condo market showed continued strength at the end of 2014 that has seamlessly carried over into the new year. On the rental side, rents in Manhattan and Brooklyn are up five percent from a year ago while Queens rents have been fairly steady. Luckily for all sectors and boroughs, multi-family construction remains robust.

            Lean inventory and strong demand were consistent themes when discuss­ing an increase in New York City average sales prices for 2014. In a November report, Streeteasy noted that Manhattan’s inventory was “nearly 20 percent beneath a five-year monthly average.” REBNY also alluded to this in its most recent report, which notes that New York’s residential sales market experienced rising prices but weakening sales volume. Large price increases in Manhat­tan (especially at luxury building One57) were instrumental in the 11 percent increase in the average sales price of a New York City home, and the average condo price increased 37 percent. Furthermore, The Real Deal reports that Man­hattan’s average sales price reached an all-time high of $1.7 million.

            While Manhattan remains dominant, Brooklyn is not to be ignored. REBNY reports that high prices in Brooklyn also drove New York City’s average sales price increase, and that the average Brooklyn condo price increased 13 percent. The Real Deal reports that average sales prices rose 9.7 percent from 2013, set a record high in 2014, and master appraiser Jonathan Miller points out that Brook­lyn is the only borough where prices have exceeded pre-financial crisis highs.

            In 2015, Streeteasy’s data scientist predicts that condo prices will increase at half their breathtaking 2014 pace. Such a slowdown would be a welcome indica­tion of prices settling into a healthier, more sustainable growth rate that could benefit all stakeholders: Sellers may be motivated to put their homes on the mar­ket in order to capture peak prices. This in turn would lead to greater inventory that could empower Manhattan buyers to be more assertive about negotiating asking prices.

Average sales prices in Manhattan and Brooklyn (Credit: Miller Samuel)

Median sales prices in Manhattan and Brooklyn (Credit: Miller Samuel)

Have you been thinking about selling your Real Estate? Now is the best time! Ask me about it.

Fernando Branco, GRI, ABR, CNE

Lic. Assoc. Real Estate Broker

Realtor NY & CT

Graduate Realtor Institute (GRI) 

Accredited Buyer Representative (ABR) 

Certified Negotiator Expert (CNE)

Charles Rutenberg Realty

127 East 56th Street, NY NY  10022

(347) 879-0730

nyctrealty@gmail.com

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