Photo: John Cunniff/Flickr
Competition in Manhattan’s housing market leveled off as 2016 came to an end, resulting in slowing price growth in most of the borough. However, price growth remained relatively strong in the Upper Manhattan submarket, according to a new report by the online listing site StreetEasy.
The median resale price in Manhattan grew 0.7 percent year-over-year to $983,205 in the fourth quarter. This was the slowest annual quarterly growth since the fourth quarter of 2010, says StreetEasy data.
Nearly 40 percent of all of Manhattan’s total sale listings had a price cut in the fourth quarter. Sellers received a median 97.4 percent of their asking price, down from the 100 percent recorded last year.
Pending sales in Manhattan in the fourth quarter declined 3.7 percent year-over-year, and homes spent 64 days on the market — up 10 days from last year.
Meanwhile, Upper Manhattan — which includes the neighborhoods of Harlem, Inwood, Washington Heights, Hamilton Heights and Manhattanville — recorded the strongest growth borough-wide. The median resale price rose nearly 9 percent in the fourth quarter from last year to $658,332.
Sellers in Upper Manhattan also received 100 percent of their asking price in the fourth quarter. The submarket also recorded a 26.7 percent share of listings with a price cut — the lowest in all of Manhattan.
“Manhattan’s housing market over the past few years has been at the mercy of climbing luxury prices,” said StreetEasy economist Krishna Rao in a release.
Rao cited stalled price growth spreading from the luxury submarket to the mid-priced market, while starter home remain in high demand.
“The end of 2016 foreshadowed what we expect to see in 2017 – increased competition in relatively affordable areas like Upper Manhattan, and even more price cuts in the luxury sector as Manhattan’s market finds equilibrium,” he concluded.
Click here to read the entire report.