After four years of rapid growth, the price increase of homes in Brooklyn and Manhattan may finally be slowing down. A StreetEasy market report shows that not only are prices increasing slower than usual but on average, homes took longer to sell over the past month, giving prospective buyers more room for bargaining (h/t DNAinfo).
Manhattan and Brooklyn each saw their smallest year-over-year price increases since 2012, with Manhattan’s median price for resale apartments increasing by only two percent, and Brooklyn’s up only 4.7 percent or $563,416. Additionally, the average number of days that property in Manhattan sat on the market jumped from 49 to 63 and in Brooklyn, it went from from 44 to 53.
"Prices are still going up and homes are still expensive across the board, but we’re seeing the market settle back into a more balanced pace," StreetEasy economist Krishna Rao told DNAInfo. With a less competitive market, Rao explains, sellers will have to level expectations while buyers gain the chance to negotiate lower prices.
Of course, this doesn’t mean the individual neighborhoods are experiencing the same slowdown. For instance, the area StreetEasy calls "East Brooklyn"—Bed-Stuy, Bushwick, Brownsville, East New York, and Crown Heights—saw a collective home price increase of around 10.7 percent, the borough’s only double-digit increase. In Upper Manhattan—Inwood, Washington Heights, and Harlem—prices were 5.9 percent higher than last year.
StreetEasy predicts that Manhattan and Brooklyn’s resale price growth will continually decrease over the next year. According to their forecast, Upper Manhattan will lead the borough’s growth with an increase of 4.1 percent. Brooklyn will possibly see a 3.9 percent increase with North Brooklyn leading the growth pack and East New York decreasing over the next 12 months.