In contrast to the strong first-quarter gains in Manhattan’s sales market, the outer boroughs saw little, if any, price appreciation in the first three months of 2007. Queens posted a slight increase in residential sales prices and Brooklyn did a bit better, while there were minor decreases in sales prices in the Bronx and on Staten Island.
Queens
Queens prices stayed stable in the first quarter of 2007, according to appraisal firm Miller Samuel’s Long Island/Queens Market Overview report.
The median sales price in the borough increased 1.6 percent in the first three months of the year, going from $485,000 to $492,900. Although there was a minor increase in the median sales price, listings languished on the market longer, and there was a significant increase in listing inventory over the last three months of 2006.
The average number of days a Queens property stayed on the market rose 12 percent. And listing inventory jumped from 8,186 properties at the end of 2006 to 9,270 at the close of the first quarter — a 13.2 percent increase.
“Even though prices increased in Queens, we still saw an increase in inventory and an expansion of marketing times,” said Jonathan Miller, CEO and president of Miller Samuel.
Brooklyn
Brooklyn home prices were up 9 percent in the first three months of 2007 compared to a year ago, according to a report prepared by appraisal firm HMS Associates. The report tracks sales data on 16 Brooklyn neighborhoods.
The HMS report showed that the average Brooklyn home cost $757,000 in the first three months of the year, up from $696,000 a year ago.
During the first quarter from the same period in 2006, price increases were reported in Williamsburg, Bay Ridge and Park Slope, while other neighborhoods — including Clinton Hill, Brooklyn Heights and Greenpoint — saw a drop in average sales prices.
Across the borough, single-family homes increased 13.3 percent from $607,000 to $669,000.
The Bronx
There was a drop in the Bronx housing market. According to data compiled by the Bronx-Manhattan North Board of Realtors, the average sales price fell, and there were fewer listings on the market.
The average price of a single-family home in the borough fell 5.3 percent to $600,700 from $635,500 in the final quarter of 2006. Single-family homes spent 168 days on the market on average, compared with 204 days in the previous quarter.
“Listings are down; a lot of people held houses off the market,” said Joe Hasselt, vice president of the Bronx-Manhattan North Board of Realtors. “[At the start of 2007] publicity scared sellers that house prices were coming down, and there were concerns the housing market might have eroded value.”
Staten Island
Staten Island’s sales market was stagnant in the first quarter, according to a report from the Staten Island Board of Realtors.
The median sales price for Staten Island homes was down .24 percent from the first quarter of 2006, dropping from $425,000 to $424,000.
“The market is more like it was in 2003, before it became superheated — which is to say, it’s normal,” said Sandy Krueger, president of the board.
Inventory remained flat, according to the board’s statistics, and the average number of days on the market increased 12.6 percent, from 111 to 125 days. Krueger said sales and prices are likely to rise slightly next quarter as deals close for hundreds of homes now under contract.
North Jersey echoes city pricing trends
By John Celock
A recent report on New Jersey’s real estate market shows an upswing in sales for the Garden State in the first two months of 2007, while forecasts still predict a tough year for the state’s housing market.
The report, released by Jeffrey Otteau, president of the appraisal firm the Otteau Valuation Group, shows gains in contract sales in most of New Jersey, along with across-the-board decreases in sell-out rates for the majority of the housing market. The market swing for the state, while still negative, has shown an increase of 19 points as compared with the same period in 2006.
The report shows the statewide volume of sales growing in the first two months of the year, the last period for which data was available. The growth in this period was similar to sales trends seen in New York.
The state’s market swing for the first two months of the year shows a fall of 9 percent, as compared with a 28 percent decrease at the beginning of 2006. All but two counties posted a negative market swing, with Bergen and Hudson Counties each posting a 2 percent increase.
In a 2007 housing forecast, Otteau noted that late 2006 gains in contract sales probably were the result of lower housing prices bringing more affordability to the market. He noted that while more affordability would help the spring market, the statewide real estate market faces several challenges, including property tax rates, a poor business tax climate, slow job growth and high housing costs. He predicts that while a correction in the state’s housing market is likely, a total upswing across the board is still waiting.
Hudson County showed the largest increase in sales from last year, posting a 25 percent jump in the first two months of the year compared to the same time in 2006. Hudson County is home to Jersey City and Hoboken, which are both beneficiaries of a spate of new condo developments.
Hudson County homes have been geared toward young professionals, and the increase in sales probably ties in with Wall Street bonus payouts.
Despite the increase in sales, there are still plenty of homes on the market in Hudson County due to the large number of pricey new developments in the area. According to the Otteau report’s projections, it would take 16 months to sell out all the inventory priced between $1 million to $2.5 million now sitting on the market.
Outside Hudson County, the rest of northern New Jersey also showed an increase in sales volume. In the first two months of the year, Bergen County saw an 11 percent increase in sales; Essex County saw a 10 percent increase; Middlesex County had a 9 percent increase; Morris County a 5 percent increase; Passaic County a 12 percent increase; Somerset County a 13 percent increase; and Union County a 3 percent increase. One county that showed weaker results was Sussex County, in the remote northwestern tip of New Jersey, which recorded a 12 percent decrease in sales for the beginning of the year.