As expected, the Manhattan real estate market continues to churn. Bloomberg News reported that Q3 resales rose 7.3% over Q3 2016. To be honest, I wasn't surprised to hear that at all. With the immense amount of new construction, resale homes are 'trading' at much higher rate and are seeing a lot more action than anyone would have anticipated.
I'm not sure how they can come up with this statistic, but they said that there have also been fewer bidding wars. Implying that this confirms that the balance between buyers and sellers is evening out. Only 13% of closed deals in Q3 2017 were above the listed price, according to Bloomberg. That’s down 18% from the same period in 2016.
If you're thinking 'thats insane', you're right!
Price points were mixed, generally not reaching the record-setting levels the market has seen in the last few years. The median sale price for a Manhattan apt rose 9.3% over Q3 2016 to $1.17 million, according to Curbed. However, the resales median was up only 1.9% to $995,000.
Notice, arrows are still pointing up.
The average price of a Manhattan apartment came in at $1.96 million, according to DNA Info, down 4% from Q3 2016.
Here's something to keep in mind while you're looking to purchase, or even just walking around the city and seeing that it seems New York City's mascot should be the CRANE!
The luxury market continues to see the biggest declines. Mansion Global reports that the threshold for luxury properties—defined as the upper 10% of the market—has dropped to just over $4 million, with an average price of $8 million for a luxury sale. That’s down nearly 20% (that's right... twenty f^#%!#G percent!) from Q3 2016. Further, 52% of closed luxury deals in Q3 2017 came in below the asking price, at an average discount of 8%.
Market observers attribute the decline in the luxury market to the reduced number of very high priced new developments. That pipeline is gradually drying up with fewer closings at ultra-luxury buildings such as 432 Park, 30 Park Place, and 56 Leonard compared to 2016.
At the lower end of the market, Bloomberg News reports that lower price points helped to move resale properties. 84% of closed co-op deals were for less than 2 million while 92% of closed condo resales were for less than $3 million.
Observers expect the Manhattan market to continue at a healthy pace with no big price swings in the immediate future. The market should continue to be a more level playing field for buyers, with more sellers settling for modest gains. (sorry investors who thought the return they were promised 4 years ago isn't going at the rate they expected).
However, the non-luxury market continues to be quite competitive and re-sales inventory has declined 4.1%. Buyers should be pre-approved and ready to make a solid offer when you spot an attractive property. Sellers of entry- and mid-level units can expect to attract a lot of interest and a good price. Sellers of luxury units should recognize that the market has turned against aspirational pricing.
End of the day, I’d be happy to discuss New York’s real estate market in greater detail and help you with your housing needs. Whether you’re a buyer, seller, investor, or you just want meet me to buy you a drink to talk business... Please call or email me to set up an appointment. You can reach me here at SClair@levelgroup.com or 516.322.7839 for a no-pressure conversation. (A heads up.. I probably won't pick up Sundays between 1pm and 8pm)
I am absolutely looking forward to hearing from YOU.