New York City, NY (PRWEB) October 29, 2013
The residential sales value of the New York City’s five boroughs has shown an increase and the highest total consideration since 2007.
This rise in the total consideration is attributed to the facts that the mortgage rates are continually increasing encouraging buyers to take decisive actions quickly. As per the figures obtained from the Real Estate Board of New York (REBNY), the total consideration in the third quarter stood at $11.3 billion, which is an increase of 32% when compared with the same period last year and by 38% when compared to the last quarter.
This increase in the total consideration of residential sales in the NYC has been the highest in the past six years. Manhattan recorded the total consideration of $6.6 billion for the last quarter, which was 30% above the third quarter of 2012 and 38% higher than the consideration for the second quarter. This was followed by Brooklyn that recorded the total consideration to be $2.2 billion, an increase of 31% and 43% for the third quarter of 2012 and for the last quarter, respectively.
The main factor that is being seen as the cause of this rise in sales is the increasing mortgage rate which has forced the buyers to take decisive action. Home ownership is also being seen as a better option than opting for homes on rent as the residential rents are very high, showing no signs of receding. On the other hand, mortgage rates are still low as compared to other factors, encouraging buyers to make a choice.
The volume of home sales taking places in five boroughs of NYC (Manhattan, Brooklyn, Queens, Bronx and Staten Island) has increased to 14,073 transactions, an increase of 28% as compared to the previous year. The median sale price of a home stood at $515,000, which is 4% higher than the third quarter of 2012 and the previous quarter.
Here, an important thing to note is that the increased activity in the market that has been witnessed in this quarter is not limited to the Manhattan and prime Brooklyn real estate markets. One-to-three family dwellings in Brooklyn and Queens stand at 1,888 and 2,409 respectively showing an all around increase in the market activity. Similar trend has been seen in neighborhoods that offered better inventory in terms of price, designs and style. The trend was particularly strong in the Upper East Side where the sale price of a cooperative unit was $1.5 million, which is an 8% increase over the third quarter of 2012. The number of sales that took place in the third quarter jumped to 778 registering an increase of 44%.
In Flushing, Queens, the average price of a condo registered an increase of 14% as compared to the third quarter of 2012 with the number of condo sales more than doubling to 192.
Overall, the number of homes over the value of $10 million increased to 34 from 22 in the previous quarter and 27 in the third quarter of 2012.