It comes as no surprise that housing prices have risen across the city over the past 12 months. But a new report from StreetEasy suggests that the trend might be dissipating.
In Northwest Brooklyn, an area that includes Dumbo, Downtown Brooklyn and Brooklyn Heights, StreetEasy predicts a 1.8 percent drop in price growth between now and February 2017. In the borough as a whole, however, median prices are expected to grow—but only by 0.9 percent. That’s much less than last year, when Brooklyn homes saw a median price increase of 6.9 percent. During that time, prices in East Brooklyn—the area that includes BedStuy, Crown Heights, East New York and Brownsville—rose three times faster than the rest of the borough at 20.5 percent.
StreetEasy’s report predicts Manhattan prices, though still increasing, will also slow down (3.2 percent growth over the next year rather than 4.4 percent last year). Since last February, the median price in Manhattan rose to $982,437, with upper Manhattan leading the charge at a whopping 10.4 percent growth.
The report gives a couple of reasons for this projection. First, homes spent more time on the market before being sold last month (82 days in Manhattan—21 days longer than February 2015). And second, rents haven’t kept pace with home sales prices. Manhattan’s median rent grew 3.3 percent over the past year, with Brooklyn’s increasing by only 0.8 percent. In South Brooklyn and East Brooklyn, median rent has actually declined since last February, at -3.4 and -1.2 percent respectively.
That’s right—you just read about rents going down, and it’s not even April Fools.