One of the most expensive markets in the country, the New York real estate market has taken a beating amid the U.S. financial crisis and housing market slump. One thing that must be considered when examining the New York market, like many others, is that it is actually a collection of many small markets, each with its own distinct trends and fluctuations. What may be true of real estate in always-pricey Manhattan might differ with the trends of the markets in the other boroughs, Brooklyn, Queens, the Bronx and Staten Island.
As of data available mid-October 2009, real estate in New York seemed poised for a rebound, even if it may take years for values to reach their pre-recession levels. The number of sales over the summer in Brooklyn were up 29.3% over the previous quarter, according to New York magazine, though that figure still represents a decline of 19.3% of the same quarter of 2008. But sales were up across the board, with apartments, co-ops, condos and townhouses all seeing more buyers. In Queens, activity was up 31% from the quarter prior, though also down 13.9% from 2008 levels at the same time.
Average home prices varied in 2009's third quarter for all of New York, with possibly positive signs in some boroughs mixed with negative signs in others. Average sale prices in September were from the previous month up by 6% in Brooklyn to $534,000, 3% in the Bronx to $367,000, 1% in Queens to $406,000. Staten Island saw a decrease in prices of 1% to $382,000, while Manhattan saw a drop f 5% to $1.23 million.
Appraiser Jonathan Miller, whose firm, Miller Samuel, prepared surveys for Prudential Douglas Elliman that New York magazine reviewed, wrote: “The surge in activity provides evidence of increased confidence and improved affordability, but not a housing bottom due to future challenges of rising unemployment, tight credit and shadow inventory.”