In looking at Manhattan residential sales trends this year so far, you could interpret the data as looking at the glass either half-full or half-empty
According to the recent Corcoran Report for third quarter 2016, the median price for Manhattan condo resales increased 11% over third quarter 2015, and 12% over second quarter 2016. The average price increased 11% and 9% respectively.
The median price for Manhattan co-op resales showed a positive change of 7% over third quarter 2015, and 5% change over second quarter 2016. Meanwhile, the average price change for Manhattan co-ops went up 3% from 3Q 2015 and down 1% from 2Q 2016.
The figures estimated by the Real Estate Board of New York New York City (REBNY) Residential Sales Report were slightly different, as they include all residential sales, condominiums, co-ops, homes and super luxury condo units in one group. Their overall pattern was the same though, showing an increase over third quarter 2015, with a decrease in second quarter 2016.
Market wide, the overall number of units available increased by 21% since third quarter 2015, though there was a drop of 9% since second quarter 2016. Dorothy Somekh, an associate broker with Manhattan-based Halstead Property, said that she has “noticed an increase in smaller sales and a decrease in the larger units.”
In general, closed sales decreased by 17% from third quarter 2015, and 7% from second quarter 2016. Though median and average prices as reported in the Corcoran Report increased dramatically from third quarter 2016 by 10% and 13% respectively, the median price remained unchanged and average price dropped by 3%. since second quarter 2016 The bad news is that there was a substantial drop in prices earlier in the year, but the good news is that the market appears to have regained its footing. Prices overall are no worse for wear.
From a neighborhood perspective comparisons are all over the board. Midtown had 522 in sales for third quarter 2016, a decrease of 30 percent from last year’s third quarter, but saw an increase of 4% in average price per square foot. Closed sales for the Financial District and Battery Park City were down by 39 percent year-over-year, but Upper Manhattan scored gains in median and average prices for resale condos and co-ops in third quarter 2016 from the previous year.
Certain sub-markets, particularly Downtown and Midtown, demonstrate slightly skewed statistics resulting from the unusually large number of sales of super luxury condominium units that the Corcoran Report segregates in certain parts of its analysis. “Downtown continues to stake its claim as a destination for luxury buyers,” the report states, “and this quarter the sub-market claimed a substantial 62% of all luxury sales in Manhattan.”
The skewing effect of luxury sales was also noted in the REBNY report. “The steep average price increase” in overall sales, “was largely due to sales at 432 Park Avenue where there were 24 sales recorded this quarter that averaged $20.9 million.”
Somekh offers an optimistic outlook about the future. “Word is that it’s continuing to get better,” she says. “We are hopeful that now that the elections are over we will have an even better fourth quarter.”
Thursday, December 01, 2016