For the first time in over a year, home sales in boroughs including Brooklyn, Queens, Staten Island and the Bronx are all up. This increase is reflective of a positive turn in the New York City housing market. Even though Manhattan sales have declined for the second quarter in a row, homes sold in all of the four outer-boroughs of New York City have increased greatly from the second quarter, with prices up an average of 10%.

Properties in Manhattan
Properties in Manhattan

A Housing Market Turnaround

Although housing prices for the most part remain below the prices posted for this time last year, the recent jump shows the biggest improvement in the market since early 2009, the biggest rise after seven consecutive quarters with falling housing prices.  The biggest drop in prices last year was of course Manhattan, which saw an 13% decrease from the 2nd quarter of last year, followed by Brooklyn and the Bronx, where prices dropped 12%.  While neither of those borough have regained their 2008 prices, Queens has seen a huge spike in home sale prices, skyrocketing up 37% from last month, with an average home price of $878,000.

Median Prices Up Outside Manhattan

Here is a breakdown of the change in median price from last month, as well as a comparison of the median prices from this time last year:

BoroughMedian Price Oct. 09Median Price Sept. 09% Change Since Sept. 09Median Price Oct. 08% Change Since Oct. 08
Staten Island$370,000$408,000+1.4%$365,000-9.3%

(Residential, All prices approximate, not adjusted for inflation)

On the other hand, the number of home sales in New York City, however, is still decreasing, with more than 1,000 fewer homes listed for sale in both Queens and Brooklyn than there were last year at this time. While the housing market at the start of the fourth quarter of 2009 is looking optimistic for the outer boroughs, we will have to wait to see if this trend does in fact continue into 2010.

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