While home sales are down across New York City city during the second quarter of 2018, Staten Island is bucking this trend with an uptick in both sales and prices, according to Real Estate Board of New York's Residential Sales Report.
The New York City residential sales market recorded an 8% decrease citywide totaling $12.3 billion in the second quarter of 2018, compared with the second quarter of 2017, according to REBNY.
This was the fourth consecutive quarter of year-over-year declines in New York City's total residential sales and transactions, according to REBNY.
In fact, the market has not experienced four quarters of consecutive year-over-year decreases since the third quarter of 2009 said REBNY.
But it's a different story on Staten Island.
While sales dropped in the other boroughs during the second quarter of 2018, they increased 16% to 1,640 homes sold during the same time period, according to REBNY.
And while the citywide average sales price of homes decreased during the second quarter of this year, on Staten Island the average prices rose by 8% to $539,000 during that time, according to REBNY.
And in some communities sale prices jumped even higher. The average sale price for a one-to-three family home in Tottenville went from $600,000 in 2017 to $718,000 in the second quarter of 2018, according to the REBNY report. That's a 20% increase.
"Staten Island is largely single-family homes. And those properties tend to be more affordable and tend to be selling rather well," said Michael Slattery, senior vice president of REBNY.
"The tax on single-family homes tends to be less than in places like Nassau, New Jersey and Westchester. So in Staten Island you're in the suburbs, but you get the New York City tax benefits," he added.
In addition, the new federal tax laws have made Staten Island real estate even more appealing.
"Staten Island real estate is in a sweet spot. Relative to most of the city, excluding the Bronx, we are the most affordable borough," said Sandy Krueger, CEO of the Staten Island Board of Realtors.
"The new federal tax bill is also working in Staten Island's favor. With limits on real estate and state/local income tax deductibility at the federal level, people have to look hard to determine if the New Jersey option is affordable," he added.
INTEREST RATES RISING
Some real estate professionals chalk the decreased sales in other boroughs up to rising interest rates.
"We are now facing a rising interest rate environment. When coupled with inventory shortages and rising prices, more and more buyers will opt for a more affordable product, such as those opportunities present here on Staten Island," said James Prendamano, vice president and CEO of the Bulls Head-based Casandra Properties Inc.
"While prices on the Island continue to rise, they are nowhere near pricing for similar product in the other boroughs mentioned," he added.
Many real estate professionals agree that Staten Island homes are still a "bargain" compared to pricing in other boroughs.
"Staten Island in my opinion has always been on sale and the best bargain for your dollar in New York City if you're not willing to head into New Jersey," said Robert Kelly, broker/owner of Master Realtors in Prince's Bay.
"In Brooklyn, it is very difficult to find anything in the better parts of mid- and southern Brooklyn for under $1,000 per square foot. In addition to that, it is nearly impossible to find anything that is new construction. ... A short jump over the bridge and you can find the same product — whether it be new construction or something built between 1960 and today. I think people who live in other parts of New York City are finally realizing that Staten Island is by far the best buy in New York City," he added.
Real estate professionals say the decrease in price in other boroughs is also due to prices in those markets reaching their peak.
"We have watched housing costs in Manhattan, Brooklyn and Queens soar out of control over the past few years," said Connie Profaci, broker/owner of her self-titled New Dorp real estate agency.
"The slowdown in the other boroughs indicates to me that those markets have reached their peak, and buyers are now looking for alternatives. Staten Island remains by far the best value for New Yorkers in terms of housing costs and lifestyle. People living in other boroughs looking to make a move are starting to recognize that. And people living on the Island are being persuaded to stay," she added.
Said Julie Porowski, a licensed salesperson with Salmon Real Estate in Castleton Corners: "Although sales may have slowed down for the other boroughs, Staten Island market it still very busy, as the statitics show. I think part of that can be attributed to other boroughs reaching a 'tipping point' with regards to affordability for desirable neighborhoods. I've seen firsthand that on most of my listings, buyers from Brooklyn and Queens made up at least half of the buyer pool."
Staten Island real estate professionals say they expect to see more rising sale prices throughout the end of the year.
"I do not think in any way are we heading for a recession or bubble bursting," said Traci Cangiano, broker/owner of the Great Kills-based Cangiano Estates, Ltd.
"My personal opinion is that this market is leveling itself out at present, and the remainder of third and fourth quarter will see numbers just as good as the second quarter of 2018. I also predict the Staten Island market will be heading into 2019 on a very high note," she added.
