The Real Deal New York

Outer borough housing markets hold up better than Manhattan’s: REBNY

January 11, 2012 10:00AM

In an unusual twist, home prices in the outer boroughs held up better than those in Manhattan in an overall dreadful fourth quarter, according to the latest figures from the Real Estate Board of New York cited by the Wall Street Journal.

While the median price in Manhattan tumbled 8.5 from the prior year quarter to $750,000, prices actually inched up by 2.9 percent in the Bronx to $350,00 and 1.4 percent in Brooklyn to $473,000. And while the median prices in Queens and Staten Island fell 4.8 percent and 5.2 percent, respectively, that’s still less than the declines in Manhattan. Citywide, the price drop measured 2.3 percent.

In terms of sales volume, the Bronx and Brooklyn also outperformed Manhattan year-over-year, as volume decreased 5.9 percent and 9.4 percent in those boroughs while dropping 9.5 percent in Manhattan. Queens sales stumbled 12.6 percent and Staten Island sales volume fell plummeted 32.6 percent.

One more measure where Manhattan lagged behind boroughs was in the total spending on homes, which decreased 20 percent on the island compared 9.6 percent in Brooklyn and 12.9 percent in Queens. The report estimated citywide sales at $5.41 billion in the fourth quarter.

REBNY’s report is different from previous fourth-quarter reports, as they count sales by when they were filed with the city, not when they closed.

The Journal attributed the outerborough’s relatively strong performance to the fact that Manhattan had bounced back earlier in the year, while the other markets never recovered from the recession so there was less room for them to fall. [WSJ]

  • urbandigs

    You can’t talk about Median price trends by looking at Sales Filings for the doesnt make any sense. That would be more of a report about the ACRIS filing lag and price trends there than the latest snapshot of Manhattan median price action. Here is an example. Yesterday there were 32 ACRIS sale filings so this would be counted in the Q1 report. However of those 32 sales: 2 sales were last November, and 30 sales closed in December. So here you have 32 closings in Q4 that will be ultimately count in Q1. This is why either you do a 60 or 90-day lag and wait for sales to roll in to track median price (it will be 2-3 months delayed but much more accurate) OR you publish preliminary figures and revise them in 60 or 90 days as more figures roll in. Just my 2 cents given what I see in the data

  • urbandigs

    PS: and it should always be the sale date! thats the reason why I think you should wait 60 or 90 days and look at new deal volume, or pending sales, as an indication to real time market strength or weakness. In the end, a deal signed today will close in 2-3 months and ACRIS will catch it weeks to months later..the lag is already enough