The Average Cost of a New York City Home Has Topped $1 Million

It’s no longer just Manhattan that’s the gilded isle. It’s now all five boroughs.

The value of all home sales throughout New York City – co-ops, condos and one-to-three-family dwellings – rose by 15 percent during the first quarter of 2017 compared to a year ago, to a total of $12.3 billion, according to the new Residential Sales Report released by the Real Estate Board of New York (REBNY).

But here’s the knockout number: the average sales price for a New York City home rose 12 percent year-over-year to $1,022,000.

In keeping with recent trends, condos were the leaders and co-ops were the laggards in sales prices. The 19 percent increase in the average sales price for a New York City condo to $1,949,000 in the first quarter of 2017 was driven by condo price growth in all five boroughs – with new records set at $3,032,000 in Manhattan, a 27 percent increase; $1,138,000 in Brooklyn, a 39 percent surge; and $602,000 in Queens, a six percent rise from the last year’s first quarter.

It’s not just prices; sales volume is up, too. Citywide home sales volume increased year-over-year rising two percent to 12,112 sales. Brooklyn experienced the greatest increase, a four percent rise to 2,905 home sales, while Queens posted greatest volume with 3,789 home sales in the first quarter of 2017.

And anyone who thought that the impending shutdown of the L train is going to put a damper on Brooklyn sales needs to think again. In Williamsburg, the average sales price of a condo rose a whopping 30 percent to $1,202,000 compared to the first quarter of 2016. The number of condo sales in the Brooklyn neighborhood surged 92 percent year-over-year to 169 sales. Closings at 429 Kent Avenue, a new development, accounted for 61 of these sales in the first quarter of 2017.

“2017 is off to a strong start following the tempered fourth quarter of 2016,” says REBNY president John Banks. “The report shows improving market momentum with continued demand for all home types throughout the boroughs.”