Photo: Robert Clark
Higher prices may have put the kibosh on summer buying season in the two hottest NYC boroughs. As prices rose, new construction sales took a nosedive, according to a report released earlier this week by New York brokerage MNS.
In Manhattan, median prices rose nearly 25 percent from last year to $3.7 million in the second quarter of 2017. Meantime, the median price per square foot was up annually over 2 percent and over 8 percent from the previous quarter.
Prices nearly doubled in Midtown East, where they were up to $4.7 million from $2.6 million — the largest quarterly upswing recorded in the borough. Conversely, prices in Chelsea decreased to $3.8 million from $4.4 million recorded the previous quarter.
Manhattan sales decreased quarterly by over 25 percent to 303 units in the second quarter, down from 403. Sales volume fell nearly 25 percent quarterly from $1.6 billion to $1.4 billion. This follows a 24 percent quarterly increase that occurred from the fourth quarter of 2016 to the first quarter of this year.
The Financial District comprised over 29 percent of all Manhattan new construction sales in the second quarter. However, the most expensive sale was a $30-million condo in Tribeca’s 30 Park Place.
Meanwhile, new construction prices were down 37 percent in Brooklyn from the previous quarter. Sales were dropped nearly 40 percent from the first quarter. The median price per square foot was down 2.4 percent from the previous quarter, but up nearly 16 percent from last year.
Sales volume plummeted from $512 million to $286 million in the second quarter, a drop of over 44 percent.
“The drop seen this quarter can be interpreted as the market correcting itself after a busy first quarter,” says MNS.
Over 20 percent of all new construction sales were in the Prospect Heights neighborhood. Toll Brothers City Living’s Pierhouse at Brooklyn Bridge Park claimed the most expensive sale in the second quarter, totaling $7.8 million.
Yet, despite the summer slump, MNS says the fall is looking to be a strong season.
“We believe that its going to be a strong fall selling season. Interest rates are still very appealing to buyers and banks are looking to lend,” Andrew Barrocas, CEO of MNS, tells BuzzBuzzNews.