Photo: Rob Young/Flickr
Manhattan continued to struggle with low supply and high demand in February, resulting in a rise in home prices — just in time for the start of spring homebuying season. The borough’s lower-priced submarket, Upper Manhattan, saw the most significant home price gains, according to a new market report released today by the listing site StreetEasy.
Last month the median Manhattan resale price rose 1.3 percent year-over-year to $990,142. Downtown Manhattan was the only submarket to record a year-over-year price decrease last month, with the median resale price slipping 1 percent to $1.1 million. Meanwhile, Upper Manhattan — the borough’s lower-priced submarket — saw the average price hit $673,874, a nearly 8 percent price increase over February 2016. It was the highest price appreciation recorded across all the submarkets.
There were nearly 7 percent fewer homes for sale in Manhattan in February than the previous year. Additionally, 38 percent of Manhattan homes cut their listing price — down from the peak of 45 percent recorded in September 2016, according to StreetEasy’s data.
The Upper and Downtown Manhattan submarkets experienced the largest inventory declines among all the submarkets, with 23.4 percent and 7.6 percent fewer listings in February, respectively.
“Low inventory and strong demand is the perfect mix for a competitive housing landscape, and that’s what this home shopping season is shaping up to be,” said StreetEasy Senior Economist Grant Long.
And while relatively affordable homes were still available in Upper Manhattan, Long recommended buyers move swiftly. “Even though prices are on the rise, growth is still much slower than in years past and may level off in coming months. More homes will be coming on the market, which will likely ease price appreciation, bringing some relief to prospective buyers, especially those interested in higher price points,” he added.
Meanwhile, Manhattan renters didn’t get much of break in February as the median rent fell only 0.3 percent to $3,199 from last year. On average, Manhattan rents are down $70 from August 2016’s peak.
However, the Upper Manhattan submarket recorded a 3.5 percent increase to $2,392 from last year — the largest rent gain recorded in all the submarkets.
Click here to read the entire report.