Price hike of City's housing sales

The health of the city's residential real estate market is looking a little uncertain, with home prices rising slightly but the number of transactions dipping in the first quarter, according to a new report released Thursday. The average city home price in the quarter stood at $732,000, up 4% from the first quarter of last year, according to the report, which was conducted by the Real Estate Board of New York and tracks quarterly sales of condominium, cooperatives and one- to three-family homes. Prices, however, were down 1% from the previous quarter. Meanwhile, there were 8,999 home sales during the first three months of the year, down 12% from the same time a year ago. The total value of sales in the city in the first quarter hit $6.58 billion, down 7% from a year earlier.

“There is a hint of uncertainty that is permeating in the market,” said Michael Slattery, a senior vice president at REBNY, adding that sales activity was inflated this time last year due to pent-up demand. “People believe it is a good time to buy now, but they are a little nervous about the economic recovery.” Brooklyn was the only borough in the city where the number of home sales did not dip. There were nearly 2,281 total home sales in the first quarter, up 1% from the same time last year. The average price of a home rose 3% to $469,000 in the first quarter. Even the condo market in Williamsburg—once the poster-child neighborhood for recession-stalled developments—rebounded. There were 205 condo sales in Williamsburg in the quarter, more than double the number from the same period a year ago.

“Activity picked up in that area when the market thawed. People got their bearings and prices were lowered,” Mr. Slattery said. “It's a good sign.” Average home prices in Manhattan, the borough that continues to represent more than half of the sales volume in the city, rose 4% to $1.4 million in the quarter from the same period a year ago. Meanwhile, Queens and Staten Island recorded modest gains of 1% to $397,000 and 2% to $415,000, respectively. The number of sales dropped in all three boroughs. In Manhattan, the number of sales fell 11% to 2,645. Similarly, in Queens, there were 2,592 sales, down 18%, and Staten Island had 999 sales, down 17%.

“We'll need to see a steady and broad-based increase in prices and transactions year to year and quarter to quarter to erase the uncertainty about the recovery,” said Steven Spinola, REBNY president, in a statement. For the first time, the citywide report provided sales data for 13 Bronx neighborhoods. The neighborhoods of Riverdale and Parkchester recorded the highest number of sales for the quarter, 81 and 79, respectively. In the Bronx, the average home price was $351,000 for the quarter. Mr. Slattery said the report will also include sales activity in Staten Island neighborhoods later this year.