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Sales of Homes Over $5 Million Plunged in New York City at End of 2017

“Affordable Luxury” grew during the first quarter of last year as buyers shied away from the most expensive homes, REBNY says

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The number of sales at and above $5 million plunged in New York in the fourth quarter of 2017.

Getty Images
The number of sales at and above $5 million plunged in New York in the fourth quarter of 2017.
Getty Images

New York’s luxury market felt the winter chill in the fourth quarter of 2017, with the number of sales for homes over $5 million sliding 28% year-over-year, according to a report Wednesday by the Real Estate Board of New York.

During the fourth quarter of last year, there were 157 sales at and above $5 million in New York City, compared to the 217 sales registered in the final three months of 2016, according to the report.

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So-called "affordable luxury homes" fared better. In fact, homes priced between $1 million and $3-million were the strongest performers for the quarter. There were 2,123 sales at this price range, increasing 11% year-over-year.

The $3-million-to-$5-million range also saw a 4% increase from last year’s 230, to 240 in the fourth quarter. In total, the city registered a record $49.9 billion in residential sales in 2017. In the previous year, total residential sales came to $46.6 billion, according to the board.

The average sales price for a home in New York City decreased 1% year-over-year to $917,000 in the fourth quarter. The average sales price of a home in Manhattan declined 7% from last year’s fourth quarter average, to $1.8 million.

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"Average sales price growth in areas outside Manhattan offset this decline and led to year-over-year stability in the average sales price for a home in New York City," John H. Banks, the board’s president, said in the report.

The average sales price of a Brooklyn home rose 5% to $901,000; in Queens, the average sales price increased 11% to $595,000. The Bronx saw a 7% increase to $422,000 while average home prices Staten Island increased to $524,000, up 8% compared to the fourth quarter of 2016.