Since I started writing about the NYC real estate market two and half years ago, every month had a little excitement somewhere. This is the first month the market feels like a boat in very calm waters. I look around and almost every metric has little to no movement from the prior month(s). The average of the Median Sales Price for the first 6 months of 2016 increases 2.7% from a year ago. However, if July and August are included, the YTD average is almost exactly the same from a year ago. Inventory remains largely the same from April to August, hovering around 7 months of supply. Days on Market, % sold at or above asking and % with mortgage contingency are all trending in a tight range since the start of the year. This is not to say deals are not happening. In fact, the pace of the market is still elevated compared to the long-term average, but much slower compared to the frantic pace of the past 4 years.
Our Brooklyn office held a panel discussion regarding the L train effect and the state of the Brooklyn market last week. The highly respected Jonathan Miller and developer Jonathan Fair were among the experts. The two takeaways were 1. the L shutdown is going to impact the market in the near term but a net positive in the long run, which will turn Williamsburg into a much more localized market; and 2. The risk of development in Brooklyn has increased. But overall the market is still well supported.
Here is a primer for all the lucky readers whose existence does not depend on the L!