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NYC’s resi market hasn’t been in a funk like this since 2009. Here’s what’s gone wrong.

Transactions totaled $12.3B, an 8% difference over Q2 2017

(Credit: iStock)
(Credit: iStock)

New York’s residential market is still sliding.

The city saw an 8 percent decrease, year-over-year, in overall transaction value in the second quarter, according to the Real Estate Board of New York’s quarterly residential sales report. It was the fourth straight quarter of declines — which hasn’t happened since the third quarter of 2009.

Transactions in the second quarter totaled $12.3 billion, according to the report. Homes sales volume dipped 4 percent to 12,262 transactions. Manhattan saw the largest decline in the number of home sales, which fell 11 percent. The high end of the market was particularly soft: the number of homes sales in the $5 million-and-above range well 27 percent versus a year earlier.

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Prices slid, too. The average sales price for a home fell 5 percent to $1 million — but the trends varied by borough. Average prices decreased in Manhattan and Brooklyn while increasing in Queens, the Bronx and Staten Island.

The average sales price of a condominium dropped 10 percent to $1.7 million — driven by declines in Manhattan (down 10 percent to $2.7M) and Brooklyn (down 9 percent to $1 million). In Flushing, there were just 96 sales in the second quarter, compared to 294 sales during the same time last year.

“The average sales price adjustments reflected in this report signal a natural cooling off interval after a very hot stretch, and the expansive demand for homes throughout the five boroughs,” REBNY president John Banks said in a statement. “We have been coming off a period of record high residential sales prices, yet the market is still in a very positive place.”

One spot of strength was the co-op market, where prices inched up 2 percent compared with last year. Average sales prices in Manhattan and Queens hit all-time highs at $1.3 million and $311,000, respectively, according to the report.

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