A real estate report released Friday shows a small increase in Manhattan sales prices, but the market should level off as under-construction units are completed.
The borough’s February median resale price was $990,142, a 1.3 percent increase from February 2016. StreetEasy senior economist Grant Long said many parts of Manhattan are running low on available units just in time for the spring influx of new tenants.
“Low inventory and strong demand is the perfect mix for a competitive housing landscape, and that’s what this home shopping season is shaping up to be,” he said in a statement.
Manhattan inventory was down 7 percent from February 2016 to last month, with Harlem, Washington Heights and other northern neighborhoods driving the decline with 23.4 percent fewer homes during that time period. By comparison, midtown vacancies dropped just 2.6 percent during those twelve months, according to the report.
Manhattan fared better, however, on the rental side in February as median rents remained nearly steady at $3,199, down 0.3 percent year-on-year. And even though the borough’s northern neighborhoods saw a 3.5 percent jump in rents in the 12 month period, it was still the cheapest area of Manhattan with a median rent of $2,392.
Long predicted that home prices would level off as more units hit the market.
“The skyline is filled with cranes,” he said. “More homes will be coming on the market, which will likely ease price appreciation, bringing some relief to prospective buyers, especially those interested in higher price points.”