NYC Real Estate Market Update 2Q15

The NYC real estate market’s red hot streak continued in the month of June, ending the second quarter of 2015 with record levels since 2007. Even though the June median sales price of $1.22 million was not the highest, many other measures painted a strong and brisk market. More people came out to buy in June, sending the total number of transactions higher and inventory lower. 54% of all sales were at or above the asking price, vs. the 44% for April and May. In Brooklyn, the median sales price clocked in at $940k, marking an ever smaller gap between the two boroughs. At this point there is a clear increase in price from the second half of 2014. Listings that were taken off the market then are reaping the benefits of a stronger market just 6 months later. Total number of transactions was 2,674 for 2Q15, 20% lower than a year ago. However, it is still 2% higher than the 10 year average of 2,619. What this means is that the pent-up demand created by the crisis is still being absorbed 4 years later. Transaction volume was very high when the recovery first started, but it has been declining since then. 4 years later we are almost back to the 10 year average. Interestingly, the Absorption Rate, which is a measure for inventory, is also almost back to its 10 year average. The market is at a happy place at the moment. From the trenches we are still dealing with bidding wars left and right. Why the constant bidding wars? The most fundamental reason: NYC population grew 6% from 8 million in 2000to 8.5 million today.

July 2015 graph

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