New York City Home Discounts Are Everywhere

by Oshrat Carmiel

If you want a discount on a Manhattan apartment, you’re in luck. You’ll find them in every neighborhood, with some of the deepest reductions in the priciest areas.

In the third quarter, buyers got median discounts of 6.3 percent in Tribeca and 6.1 percent in Flatiron, according to data from StreetEasy. Midtown, where ultra-luxury condo towers are proliferating on Billionaires’ Row, had the biggest cuts in Manhattan—a median of 11 percent.

The discounts extended to almost all neighborhoods in Brooklyn and Queens as well. As purchases slow across the city, a broader swath of sellers has been facing the reality that price cuts are the surest path to a deal.

“There is a wave of capitulation among sellers who realize that their first asking price was a bit off,” said Grant Long, senior economist at StreetEasy. “The fact that you’re seeing so few areas in which homes are selling for above their initial asking price tells you this is not an isolated phenomenon, that the slowdown in the market is becoming much more widespread.”

Sellers had even gotten too ambitious in areas traditionally seen as affordable alternatives to Manhattan, such as the Astoria section of Queens, where a median of 5.2 percent was whittled off the list price. Buyers in Brooklyn’s Crown Heights neighborhood got median discounts of 3.7 percent.

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Manhattan, Brooklyn and Queens real estate at a glance
for the quarter ended :

Highest priced sale

Median home price

Change in price from last year

Click or tap on any neighborhood in the map to add it to the comparison charts below. Click or tap on any neighborhood name above to remove it.

Definition of Terms and Methodology

The sales data are based on condo, co-op, townhouse and single-family home transactions during the last three months of 2016, according to StreetEasy’s analysis of records from the New York City Department of Finance. Due to a delay between the closing date and when a sale is recorded by the Department of Finance, the data may not include all closings during the quarter.

Highest sale price
The highest sale price for all closed transactions in the quarter.

Median resale price
The middle price for homes with sales that closed in the quarter and had a prior recorded sale since 1995.

Median sale price, all homes
The middle price for all sales that closed in the quarter, including deals in new developments.

Price change
The percentage change in median price from the identical period in the previous year.

Median days on market
The middle value for the number of days from when a home was originally listed on StreetEasy to when it went under contract.

Sales count, all homes
The number of home sales that closed during the quarter.

Sales count, resales
The number of homes that sold in the quarter with a prior recorded sale since 1995.

Median asking rent
The middle advertised monthly price for rental homes listed on StreetEasy during the quarter.

Rental count
The number of properties listed for rent on StreetEasy during the quarter.

Tipping point
The time it would take for the accumulated costs of renting a home to equal or exceed the cost of buying and owning a comparable-size home in the same area. The calculation takes into account such homeownership costs as principal and interest payments on a 30-year fixed-rate mortgage, New York City taxes and the tax implications of selling a home, and such rental costs as renter’s insurance and the broker’s fee.

Listing discount
The median percentage change between the initial asking price listed on StreetEasy and the recorded sale price.

Share of sales listings with price cuts
The percentage of homes for which the list price on StreetEasy was reduced during the quarter.

Share of rentals discounted
The share of all active rental listings on StreetEasy that had a reduction in asking rent during the quarter.

NAs
Metrics with fewer than 10 examples in a neighborhood aren’t reported because more data are needed for an accurate representation. These are indicated as “NA”.