While the market for house under the $1 million mark in New York City is super-hot, the supply of real estate fall far below the demand.
According to data collected by StreetEasy, in 2016, more than half of all online searches were for homes with asking prices under $1 million. From that selection, slightly under 14 percent were looking for homes priced between $400,000 and $600,000. Houses priced from $800,000 to $1 million were sought by approximately 12 percent of searchers. Slightly more than 13 percent of house hunters searched for places priced between $600,000 and $800,000.
DNA Info was told by StreetEasy data scientist Krishna Rao, “New Yorkers are actively searching for homes that fit their budget and their lifestyle. As we’ve seen over the past few quarters, there is much less demand for high-priced luxury units and increasing competition for homes at the bottom of the market.”
The Real Deal reports, “In 2016, Manhattan co-ops and condominiums collectively had a median sale price of $1.1 million in 2016, an increase of 28 percent from the $860,000 median price a decade ago. In Brooklyn last quarter, the median sales price hit $750,000, an all-time record. In Queens, the median price during the same time period was $498,000.
In Brooklyn, reportedly the most unaffordable place in the country, demand is outstripping supply, particularly in the lower part of the market.”
Last month, Corcoran’s executive vice president of Brooklyn, Frank Percesepe told The Real Deal, “Under $2 million, we’re short on inventory. Under $500,000 we are very, very short. There’s a large group of people that would enter the market if there were property appropriately priced for them.”
By Mark Snyder