May
17

All Real Estate is Local. Very, Very Local!

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Truth, lies and statistics!

Earlier this month,  Zillow released its Q1 Real Estate Report.  Many in the press joined in and cried gloom and doom.

The hysteria was best summarized by a Curbed article that listed the 10 Most Depressing Things Mentioned in The Zillow Report.  Perhaps real estate prices continue to decrease in Phoenix, Los Vegas, Tampa, etc., but in New York City, especially Manhatan,  it’s just not the case.

You would be misled if you simply looked at the Zillow Home Value Index for New York Metro data and assumed it had anything to do with Manhattan Residential real estate sales.

  MoM QoQ YoY
New York Metro -.5% -1.6% -5.3%

But if you focus on coops and condo sales which account for over 99% of residential properties sold in Manhattan vs single family homes , you’ll see that in New York City there have been significant price increases

  MoM QoQ YoY
New York Coop+Condo +2.3% +7.5% +19.2%

As previously discussed with regard to the Case Shiller report discussed here, the Case Shiller report excludes new developments, condos and coops.  At least the Zillow report has that data available (perhaps not new development) but you have to dig for it.

All real estate is local.  So local, in fact that certain neighborhoods, blocks, buildings and even specific apartments have their own hyper-local real estate data.

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