According to a recent PropertyShark report, the median sale price in 28 of 50 costly neighborhoods in New York City saw a YoY decline. NYC's median sales price was $695,000 at the end of the first quarter, dropping $55,000 compared to the previous quarter. The number of sales saw a 35% YoY decrease. Over 90% of the neighborhoods (46) recorded a decline or remained neutral concerning the number of sales. The report suggests that the city's real estate market is cooling down despite recent reports suggesting property prices on the East Coast are booming at the cost of the West Coast.
The list of the top 50 most-expensive neighborhoods in New York City comprises 22 areas from Manhattan and Brooklyn, eight communities from Queens, and one from the Bronx (a total of 53 neighborhoods made it to the list as a result of ties). Manhattan's Hudson Yards was the most expensive area, with a 6% YoY increase from $5.40M to $5.729M. However, the number of sales in the neighborhood declined by 67% from 24 to 8. The second most expensive neighborhood TriBeCa recorded a 6% YoY decrease in median sale price. Vinegar Hill was the third-most expensive neighborhood, but its median sales price did not see a YoY change, marking the first time the top three areas were from Brooklyn. Overall, Brooklyn, Manhattan, Queens, and the Bronx posted a YoY decrease in sales of 42%, 39%, 28%, and 19%, respectively.
The sharpest increase in median sales price was seen in the Bronx neighborhood of Fieldston, registering a 149% surge. The area jumped 99 positions in the ranking from 140 to 41. This record increase is attributed to the type of sales activity. In the first quarter of last year, 87% of the sales were co-ops, and 7% were single-family homes. However, this year, single-family homes accounted for 54% of transactions, and co-op comprised the remaining. The effect of this increase on housing affordability in the Bronx is a key trend to watch for in the coming months, as the region's homeownership rate is a mere 20%.
According to the city data compiled by the New York Housing Conference, Mayor Eric Adams' administration financed 144 new income-restricted homeownership units last year. It preserved another 875, around 7% of affordable housing produced in 2022. Affordable homeownership units made up a tiny portion of homes financed in the previous year.
Manhattan neighborhood Soho saw a 35% YoY decline, the second-largest price decrease among the wealthiest neighborhoods. Co-ops, generally cheaper than condos, represented 68% of sales in Q1, more than doubling from the previous year. This contributed to the median sale price decrease in the neighborhood.