By Colin R. O'Leary
Although the economy is booming and unemployment is at record lows, 2019 was a challenging year for the NYC real estate market. The market is showing mixed results depending on which borough you look at. Medium home values have risen in Brooklyn and Queens over the past year, however slightly at just over 1% over the past 12 months. Zillow predicts that medium home values will decline slightly in both Brooklyn and Queens in 2020.
The Bronx real estate market is the outlier, where the market continues it's hot streak. The medium home value in the Bronx has risen over 10% year-over-year. The median price of homes currently listed in Bronx is just $385,500, which makes it the most affordable borough in New York City. Zillow is predicting the medium home value in the Bronx will continue to rise in 2020.
Medium home values have decreased year-over-year in both Manhattan and Staten Island. The Manhattan market has been the most troubling for home sellers in NYC, where the medium home value has decreased -6.3% over the past 12 months. Staten Island home values have also declined by -1.2% over the past year. Zillow predicts that medium home values in Manhattan and Staten Island will also continue to decline over the next 12 months.
The luxury market in NYC has been hit hard over the past 12 months. According to the Olshan Luxury Report, the number of contracts signed above $4 million in Manhattan has declined by 16% compared to 2018. 935 contracts have been signed above the $4 million price mark in 2019, totaling $7.65 billion worth of real estate transactions. According to the report, this is the lowest dollar volume for luxury real estate priced above $4 million since 2012.