November Multifamily Sales Significantly Down As Brooklyn Shows Only Positive Signs Per PropertyShark

PropertyShark is continuing to analyze the multifamily sector in New York City and what they have seen is that multifamily sales volume is significantly down in what they deem an ongoing slowdown. The report analyzed sales in Manhattan, Brooklyn, the Bronx and Queens in order to prepare their report with only the borough of Brooklyn showing sales volume activity up during November. Sales volume for the year is down significantly as well. Most believe that the downturn in sales being attributed to the Housing Stability and Tenant Protection Act of 2019.

The overall volume of sales in New York City was down 60% from same time period of a year ago to $412 million. Sales activity only saw 71 transactions close during the month. Transaction were down 35% from a year ago with the amount of units being transferred down 65%. For the year, the city so far has recorded a sales volume of $7.34 billion. This is down $3.83 billion from the period of January 1, 2018-November 30, 2018. Transaction activity in multifamily is down by 316 properties during the same period as only 893 sales have been recorded in the first 11 months of 2019. 2018 saw 1,209 deals close from January to the end of November. Units being transferred via the 893 sales was 20,124 between January 1 and November 30, 2019. This is significantly down from the units transferred in 2018 where 44,308 units were moved.

Here is a breakdown per borough of multifamily sales for November 2019:

Brooklyn: Brooklyn was the only borough that saw positive sign with respect to sales volume. Sales volume was up 26% totaling $146 million for the period and bolstered significantly by the sale of 39 Waverly Place at $67,250,000. Transactions were down in the borough with only 28 recorded which was 20% lower than the same period in 2018. Units transferred was down 29% from 2018 with only 264 units moved. For the overall year 5,617 units have been moved for the year. This is a tremendous 63% drop year over year. Volume has also been down 41% compared to 2018.

Manhattan: Sales volume was down 55% to $156 million for November. Sales transactions were also down 35% with only 22 closings recording during the period. Only 335 units were transferred during the period which is down 64% year over year. With respect to the year of 2019 there were 6,589 units sold during January and November. This was a 54% drop from the same period last year. Sales volume recorded at $3.73 billion, which is $1.64 billion less from the same period last year.

Queens: Queens saw their sales volume drop 83% year over year. The volume totaled $83,862,500 for the month. It should be noted that November of 2018 saw unusual high sales activity with over $500 million. Transactions were only down 7% from a year ago as 14 transactions were recorded for the month. The amount of units transferred equaled 2,797 which is a decreased of 65% from 2018 for the January 2018 through November 2018 period. That number of units transferred for November 2019 was 306 which is a 79% year-over-year drop.

Bronx: Sales volume was down 61% from November 2018 coming in at a little over $23 million. Only 7 multifamily dears were closed in November. Between January 1 and November 30 in 2019 the Bronx saw volume down 21% totaling $867 million. Unit volume transferred during the period was also down 28%.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

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Housing Reform Sends NYC Multifamily Sales Tumbling Per PropertyShark Report

A new report from PropertyShark indicates that the Housing Stability and Tenant Protection Act of 2019 (TPA) has adversely affected Multifamily sales in NYC. Per the report, multifamily sales are down 76% in volume year over year totaling only $284 million across Manhattan, Bronx, Brooklyn and Queens. At the same time last year, sales numbers were at $837 million for the time period.

PropertyShark analyzed multifamily sales in Manhattan, Brooklyn, Queens and the Bronx for the month of September to get as they say get “an accurate snapshot of the situation on the ground”. Besides finding that sales were down 76%, they also found that sales activity was down 34% against 2018 and there were only 55 deals during this period. That amount to the slowest period in the last 33 months. The volume of multifamily units also are down significant. The report states that sales of units transferred was halved. They state “only 1,146 multifamily units traded hands last month across the four boroughs, while September 2018 saw 916 units traded in the Bronx alone.” Across the four boroughs being reports units transferred was down 51% during the period. 14,509 multifamily units were sold wherein 25,368 was sold during the same period last year.

Across the 4 boroughs here is what the breakdown is:

Manhattan- The majority of the multifamily loss starts in Manhattan as it makes up more than half of sales for NYC and is the influential borough that affects the others. The report indicates that sales dropped significantly by 81% year over year. Sales amounted to $163 million for the month which is a significant dropoff from the $837 million the year before. Sales activity dropped 71% with only 5 deals closed.

Brooklyn- Brooklyn sales volume was down 68% from the same period last year. There were 21 deals that closed with the volume coming in at $57 million. The units traded were also down substantially. For the first 9 months of the year 3,639 units were transferred. In comparison 14,006 were traded during the same period last year.

Bronx- Bronx sales activity was down 64% with only 8 deals closing in the period. Sales volume came in at $28 million which is down a whopping 82% from 2018. Year to date sales are down 15% at $777 million. The report also indicates that prices were down 27% to $128,041 from 2018.

Queens- Queens was the only borough that showed positive figures. In the borough, there was a 100% increase in sales at $29 million which is up from $14.5 million from 2018. There was an 86% of sales activity as 147 units were transferred in 13 deals.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/housing-reform-sends-nyc-multifamily-sales-tumbling-per-propertyshark-report/

Visit us at www.bjdpropertymanagement.com

Hudson Yards Becomes Most Expensive Neighborhood In New York City

Property Shark has recently released their market study of the top 50 neighborhoods in New York City for the third quarter of 2019. Their study indicates that Hudson Yards has surpassed Tribeca as the most expensive neighborhood in the City with sales in the neighborhood coming in at a median price of close to $5 million dollars per property.

The methodology of median sales price was determined based on residential property sales closed between April 1, 2019 and June 30, 2019. The statistics were based on residential properties that are single-family homes, condos and co-ops. Package deals were exclude and a neighborhood had to have more than 5 residential sales. Of significance is that Manhattan, Queens and the Bronx all saw decreases in the amount of transactions year to year. A big reason theorized for the fall of transactions is the Mansion tax which went into effect on July 1st.

Manhattan’s median sale price fell below $1 million for the first time since the 4th quarter of 2016.  Also Brooklyn and Manhattan were the only two boroughs to have transactions over $3 million. The study states “Manhattan and Brooklyn were the only boroughs that saw units trade for more than $3 million. However, both saw significant drops in median home sale prices and transaction volumes. In Brooklyn, the percentage of sales greater than the $3 million threshold fell 44% Y-o-Y to just 24 sales. The median sale price over the threshold fell to $4,075,500—decreasing 3% Y-o-Y. Manhattan’s transaction volume in the high-end market fell more than 37% to 266 total transactions year-over-year. The median sale price for this market also dropped more than 10% Y-o-Y to $4,477,500—a decline of $515,000.”

Below are some highlights for the boroughs of Manhattan, Queens and Brooklyn:

Manhattan: Lower East Side’s median sale price grew 87% to almost $1.5 million. The Lower East Side moved the neighborhood 8 positions to #8. TriBeCa registered a 30% decline from 2018 to around $2.4 million. The Upper East Side had the most transactions in the quarter coming in with 539 sales at a median sales amount of $1.175 million.

Brooklyn: 2 of the top 10 neighborhoods came in from Broooklyn. Carroll Gardens’ median sale price of $1.43 million had them moved 3 spots on the list from #13 to the 10th spot. Cobble Hill saw a 102% increase with a median sales amount of $1.8 million. Cobble Hill came in at #7 on the list.

Queens: Queens had 10 of the most priciest neighborhoods on the list with Ditmars-Steinway coming in as the borough’s most expensive with a median sales of $1,075 million and #21 in the City. Old Howard Beach entered the list at #45 which was up 50% from 2018 and coming in at the 45th position.

BJD Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx.  Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.

http://bjdpropertymanagement.com/hudson-yards-becomes-most-expensive-neighborhood-in-new-york-city/

Visit us at www.bjdpropertymanagement.com