The Real Estate Board of New York (REBNY) reported today that both New York City’s total residential sales volume and total residential transactions decreased significantly, reaching their lowest points since REBNY started reporting in Q1 2006 according to its Q2 2020 Quarterly Residential Sales Report.
From April 1 to June 30, 2020, citywide total residential sales volume decreased 50 percent year-over-year, from $12.8 billion to $6.4 billion, the lowest point in residential sales volume since Q4 2011. Every borough, with the exception of Staten Island, experienced declines in total sales volume.
Citywide residential transactions decreased 43 percent year-over-year, from 11,413 to 6,534 sales, with all five boroughs seeing a decrease in the number of transactions. The average sales price of a home in New York City in the second quarter of 2020 was $975,806, a 13 percent decline year-over-year.
“This dramatic decline is an SOS to federal, state and city officials. The report confirms how vulnerable the residential real estate market is as it reels from the devastating impact of the pandemic,” said REBNY President James Whelan. “As we look to restart New York’s economic engine, it’s essential we receive federal aid and focus on smart policies that create jobs and encourage private sector investment that will generate critically needed tax revenue.”
Citywide, transactions declined in each of the condominium, cooperative and one-to-three family dwellings categories. Citywide condominium transactions declined 57 percent to 1,248 units; citywide cooperative transactions declined 60 percent to 1,321 units; and citywide one-to-three family home transactions declined 24 percent to 3,965 units.
The real estate industry, which serves as the fundamental driver of New York City’s economic engine, represented more than half (53 percent) of the city’s total annual tax revenue in the last fiscal year. The industry employs hundreds of thousands of New Yorkers from building service workers to brokers and generates essential revenue for the City of New York to maintain the salaries of first responders, fund infrastructure improvements and provide for public services like schools, libraries and parks.
Other key findings from the Q2 2020 Quarterly Residential Sales Report include:
– Citywide condominium sales volume declined 64 percent year-over-year to $2 billion.
– Citywide cooperative sales volume declined 65 percent year-over-year to $957.7 million.
– Citywide one- to three-family home sales volume declined 25 percent year-over-year to $3.4 billion.
– Manhattan showed the largest year-over-year decline of all five boroughs in both total sales volume and transaction volumes, at 66 percent and 62 percent, respectively.
– REBNY reports 9,320 active and 3,231 in-contract listings in Q2 2020 across Manhattan and Brooklyn, which represent a 9 percent increase and 32 percent decline from Q1 2020.