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Douglas Elliman Releases Q2 2017 Sales Market Report for Brooklyn, Queens & Riverdale and June 2017 Rental Market Report for Manhattan, Brooklyn, Queens

Date: Jul 13, 2017

DouglasElliman Releases Q2 2017 Sales Market Report for Brooklyn, Queens & Riverdale and June 2017 Rental Market Report for Manhattan, Brooklyn, Queens

Strong Sales Activity in Brooklyn & Queens with Record Prices and Tight Inventory; Riverdale a Market Waiting to be Discovered

Rents Remain High While Concessions Keep Vacancies in Check in Brooklyn, Queens  & Manhattan

New York, NY (July 13, 2017) – Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide, today releases both the Q2 2017 Sales Market Report for Brooklyn, Queens and Riverdale, as well as the June 2017 Rental Market Report for Manhattan, Brooklyn and Queens. The sales report shows that Brooklyn and Queens are setting record prices with heavy sales activity and tight inventory, while rents in Brooklyn, Queens and Manhattan continue to remain high, despite a softening market. The sales market in Riverdale is mixed price-wise and inventory remains low.

“Brooklyn has become the new Manhattan, while Queens has become the new Brooklyn,” said Steven James, Chief Executive Officer, New York City, Douglas Elliman. “As prices rose in Manhattan, buyers moved to Brooklyn and now we’re seeing this flow of buyers consider Queens.

And Riverdale is a market waiting to be discovered.”

“While sales are flourishing in Brooklyn and Queens, rents remain high but prices are sliding as concessions have stabilized,” said Jonathan Miller of Miller Samuel, Inc, the author of both reports.  “Concessions are 3-4 times higher than they had been a few years ago, but they are staying consistent because they are working and vacancy has stabilized. I don’t expect concessions to rise much higher than they are now.”

“What we are seeing in Brooklyn, Queens and Manhattan is that a lot of people are looking to move, but they have a lot of choices and are seeing more product before making a decision,” said Hal D.Gavzie, Executive Manager of Leasing, Douglas Elliman Real Estate.  

“Concessions are working, and landlords are also finding success in pricing apartments aggressively. This is a very good time for customers to be in the rental market.”

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BROOKLYN SALES MARKET HIGHLIGHTS

Overview

- Thirdaverage sales price record set in past four quarters
- Fourth consecutive quarter with median sales price record
- Most second quarter sales in a decade
- Fastest paced market on record

- Lowestsecond quarter inventory in 9 years it has been tracked

Key Trend Metrics (compared to same year ago period)

- Median sales price increased 20.6% to $795,000 [record]
- Average sales price increased 22.1% to$997,654 [record]
- Number of sales jumped 50.7% to2,845 

- Listing inventory fell 15.5% to 2,257
- Days on market was 93 days, up from 76 days
- Listing discount was 2.9%, up from 1.1%

- Luxury median sales price jumped 32.6% to $2,520,168

- New development condo market share of all condos was41.2%, up from23.6%

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QUEENS SALES MARKET HIGHLIGHTS

Overview

- Upwardpressure on sales and prices from the "Brooklyn spillover” continued

- Fourth averagesales price record set in past five quarters
- Second median sales price record set in four quarters
- Listing inventory was the second lowest second quarter in 12 years

- Fastestpaced second quarter in a dozen years

Key Trend Metrics (compared to same year ago period)

- Median sales price rose 9.7% to$510,000 [record]
- Average sales price increased 12.4% to$592,245 [record]
- Number of sales surged 47% to 3,839

- Listing inventory edged up 1.5% to 4,469
- Days on market was 111 days, up from 80
- Listing discount was 0.4%, down from 1.9%

- Luxury median sales price increased 9.1% to $1,200,000

- Newdevelopment condo market share of all condos was 40.9%, up from 12.1%

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RIVERDALE SALES MARKET HIGHLIGHTS 

[includes Fieldston, Hudson Hill,North Riverdale and Spuyten Duyvil]

Overview

- Thecontinued decline in inventory restrained the number of sales across allproperty types
- Median sales price expanded but remaining price trend indicators weremixed
- Faster marketing time but with more negotiability

KeyTrend Metrics (compared to same year ago period)

- Median sales price rose 4% to $285,000
- Average sales price declined 1% to$420,546
- Number of sales fell 13.4% to 155

- Listing inventory fell 31.7% to 177
- Days on market was 124 days, down from 151
- Listing discount was 4.1%, up from 3.3%

- Luxury median sales price rose 14.4% to $1,145,000

“Sales in the luxury sector are settingprice records. For this quarter the median sales price in Brooklyn jumped32.6%, 14.4% in Riverdale and 9.1% in Queens. Inventory is tight all around andwhat is available is moving fast,” said Jonathan Miller of Miller Samuel, Inc,the author of the report.

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MANHATTAN RENTAL MARKET HIGHLIGHTS

Overview

- Mediannet effective rent remained essentially flat as new leases jumped
- Market share of landlord concessions remained more than double theyear-ago level
- Vacancy rate remained lower than year ago level asconcessions continued to work
- New development median rent moved higher as average size increased
- “Non-doorman” median rent continued to outperform higher end “Doorman”
- Luxury median rent declined and remained weakest segment of market

Key Trend Metrics (fromsame period last year)

(Face Rent)
- Median rental price increased 1.6% to $3,500
- Average rental price slipped 0.2% to $4,126

(Net Effective Rent – includes concessions)
- Median rental price declined up 0.1% to $3,410
- Share of new rental transactions with OP or rent concessions was 23.9%, upfrom 9.7%
- Size of concession was 1.3 months of free rent or equivalent, up from 1.1months

- Manhattan vacancy rate fell to 2.21% from 2.3%
- Number of new leases increased 26.9% to 6,604

- Listing inventory rose5.1% to 7,824
- Days on market was 41, up from 39 
- Listing discount was 1.7% down from 2%

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BROOKLYN RENTAL MARKET HIGHLIGHTS

Overview

- Number of new leasessurged as median and average rent declined
- Landlord concessions, the second highest on record, werenearly triple the year ago level

- Net effective medianrent declined annual for the 9th month of the past 12

- Listing inventory expandedannually for the 22nd consecutive month

- New leases surged withcontinued introduction of new development and tenant pushback at lease renewal
- Brooklyn median rent was $650 less than Manhattan median rent

Key Trend Metrics (fromsame period last year)

(Face Rent)
- Median rental price declined 1% to $2,850
- Average rental price slipped 0.6% to $3,198
- Number of new leases jumped 61.5% to 1,717

(Net Effective Rent –includes concessions)
- Median rental price edged slid 1.6% to $2,813
- Share of new rental transactions with OP or rent concessions was 17.1%, upfrom 6.2%
- Size of concession was 1.3 months of free rent or equivalent, down from 1.5months

- Listing inventory rose 13.5% to 2,620
- Days on market was 39, down from 44 
- Listing discount was 1.5%, up from 1.3%

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QUEENS RENTAL MARKET HIGHLIGHTS

Overview
[Northwest Region]

- Prices moved higheras new development exceeded one third of rental activity
- Landlord concession market share was four times higher thanlast year

- First year over yeardecline in inventory in 22 months

- Northwest Queensmedian rent was $53 more than Brooklyn median rent

Key Trend Metrics (fromsame period last year)

(Face Rent)
- Median rental price was $2,903, up 4.2%
- Average rental price rose 0.6% to $2,975
- Number of new leases jumped 22% to 350

(Net Effective Rent – includes concessions)
- Median rental price rose  2.5% to $2,822
- Share of new rental transactions with OP or rent concessions was 38.3%, upfrom 9.4%
- Size of concession was 1.2 months down from 1.5 months


- Listing inventory slipped 3.3% to 501
- Days on market was 34, unchanged
- Listing discount was 0.8%, up from -0.2%

- New development marketshare was 34.6%, up from 28.2%

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate isthe largest brokerage in the New York Metropolitan area and the fourth largestresidential real estate company nationwide. With more than 6,500 agents, thecompany operates approximately 90 offices in Manhattan, Brooklyn, Queens, NewJersey, Long Island, the Hamptons & North Fork, Westchester, Greenwich,South Florida, Colorado and Beverly Hills. Moreover, Douglas Elliman has astrategic global alliance with London-based Knight Frank Residential for businessin the worldwide luxury markets spanning 59 countries and six continents. Thecompany also controls a portfolio of real estate services including DouglasElliman Development Marketing; Manhattan’s largest residential propertymanager, Douglas Elliman Property Management with over 250 buildings; and DECommercial. For more information on Douglas Elliman as well as expertcommentary on emerging trends in the real estate industry, please visit www.elliman.com.

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