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manhattan market report

Manhattan Apartment Sales Down 20%

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Manhattan Apartment Sales Down 20%

Supply and demand. It’s one of the first things we learn in business. Right now there are a lot of apartments available for purchase in Manhattan and less people buying.


Sales of previously owned condos and coops fell 20% in the third quarter as compared to the previous year in a report from Miller Samuel Inc and Douglass Elliman Real Estate. There were 5290 apartments on the market at the end of September, 53% more than the number available in 2013.

Sales of units less than $1 million have been in short supply and those that made it to market, sparked bidding wars. Consumers are also taking longer to make a decision. However previously own properties spent an average of 72 days on the market with an average price of 1.5 million, an increase from last year which was only 67 days with an average price of 1.48 million.

The median price of resales in the quarter reached 2.6% according to the report. That is a step down in a 3 year period which the annual price growth reached 18%.

Though new developments are partly to blame. Both the average and median prices for new developments have skyrocketed. The average price is $5.3 million while the median is $4 million according to Halstead. The luxury market this quarter had the highest number of apartments over $10 million sold since the financial crisis of 2008.

Though sellers remain optimistic. In a report by Compass, the median condo asking price reached 2.3 million. The median for condos that went into contract was 1.6 million about 18% less than the peak in 2014. Prices have been going up, so it’s normal for the market to take a pause, because it simply cannot go up forever.

However when priced correctly, units will move. Sellers have to curb there exuberance and know the market. They have to trust their agents in pricing because the demand is still there.

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Manhattan Market Report: 2nd Quarter 2016

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Manhattan Market Report: 2nd Quarter 2016

The market for Manhattan apartments cooled 3% to $2,113,924 from the record breaking $2,180,096 reached last quarter as the pace of luxury new development condominium closings waned. Year-over-year, however, the average sale price and median price per square foot continued to increase, rising 15.3% and 8.5% respectively. The recent softness is evident in days on market which rose 17.65% from 51 to 60 compared to last year.

With the diminishing volume of high end new condos filtering out of the pipeline, the average sales price for condos dropped 7.94% to $2,686,948 from record levels last quarter. The median sales price for condos dropped even further, falling 14.6% to $1,525,000 from last quarter. Despite this quarter over quarter decrease, on a year over year basis the median sale price rose 15%, while price per square foot trends notched a 5.2% gain versus this time last year. The time it took to sell a condo rose 26% to 70 days compared to 50 days last year.

Manhattan co-op prices continued to rise on quarterly basis, with a slight 1% increase compared to the prior quarter. Year over year, however, the average price for a co-op dipped 7.36% to $1,251,077. Co-op median sale prices ticked up slightly both quarter over quarter and year over year, rising 1.32% and 0.59% respectively. Days on market followed the broader trend as co-ops took 11% longer to sell, 56 days, from a year ago.

Looking ahead, we expect overall price trends to be pressured, as the pace of luxury new development closings gradually diminishes and consumers adapt to the new reality of increased inventory. This rising supply is already helping buyers gain leverage, as lower deal volume and higher days on market have dampened seller’s expectations for continual record setting price levels. All in all, as we reach the midway point of 2016, market forces appear to be balanced after years of strongly favoring the sell-side.

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