Manhattan’s luxury real estate market leveled off in February, as median resale prices dipped 0.1% year-over-year to $3.25 million, according to a report released Friday by StreetEasy.
Resale prices of luxury properties, which StreetEasy defines as the top 20% of the market, have been declining on a year-to-year basis since February 2016, largely due to oversupply, according to StreetEasy, a subsidiary of Zillow focusing on New York’s property marketplace.
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February’s data could come as a relief for sellers. In February, the percentage of luxury listings with a price cut dropped to 26.2%, compared with 31.1% during the peak in September 2016. Luxury inventory in Manhattan was down 2.2% in February year-over-year.
Brooklyn’s luxury segment followed suit. In February, the median resale price in the borough reached $1.3 million, a 0.6% increase year-over-year and the slowest annual growth pace since March 2011. Sales inventory was slightly up 0.5% and the percentage of listings with a price cut dropped to 9.3% from the July 2016 peak of 13.1%.
In terms of the overall market, Manhattan’s resale prices increased 1.3% to $990,142 over the last 12 months leading up to February, while prices in Brooklyn rose 5.2% to $569,429. Manhattan had 7% fewer homes on the market compared to a year ago; Brooklyn saw 2% more listings during the comparable timeframe.
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Meanwhile, nearly 38% of Manhattan homes and 26% of Brooklyn homes had a price cut in February, down from a peak of 45% and 32%, respectively, recorded in September 2016.
"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," Grant Long, senior economist at StreetEasy, wrote in the report.
"Even though prices are on the rise, growth is still much slower than in years past and may level off in coming months," Mr. Long said. "The skyline is filled with cranes. 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."