The under-$1 million market in New York City is smoldering, but supply isn’t close to meeting demand.
Over half of all online searches last year were for homes asking less than $1 million, DNAinfo reported, citing data from StreetEasy. Of that group, just under 14 percent were searching for places priced between $400,000 and $600,000. The second most sought price was $600,000 to $800,000, with just over 13 percent of house hunters searching within that bracket. Around 12 percent of users looked for houses priced between $800,000 to $1 million.
“New Yorkers are actively searching for homes that fit their budget and their lifestyle,” StreetEasy data scientist Krishna Rao told the publication. “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.”
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.
“Under $2 million, we’re short on inventory. Under $500,000 we are very, very short,” Frank Percesepe, Corcoran’s executive vice president of Brooklyn, told The Real Deal last month. “There’s a large group of people that would enter the market if there were property appropriately priced for them.” [DNAinfo] — Miriam Hall