The average apartment price in Manhattan remains over $2 million for the second straight quarter, according to Halstead’s Second Quarter 2016 Market Report. At $2,077,680, the average price, fueled by luxury new development closings, increased 16 percent since last year and was just below the $2,108,788 average price record set during the first quarter of 2016. The median price of $1,110,000 was down slightly from the first quarter 2016, but showed a 13 percent improvement from the second quarter 2015. The Halstead Market Report is based on 2,115 reported Manhattan apartment sales, 10 percent fewer than last year’s comparable period.
“While data shows that the average Manhattan apartment price was 16 percent higher than one year ago, this increase is due to a jump in luxury new development closings. Buyers and sellers should understand that many of the contracts for these new apartments were signed years ago and their pricing may not reflect current market conditions,” says Richard Grossman, President of Halstead Property.
Halstead’s Second Quarter 2016 Market Report also noted the following data:
- The average resale price slipped 4 percent from a year ago to $1,527,641, but remained virtually unchanged from the prior two quarters;
- Smaller apartments continue to be the strength of the market, as median resale prices set a new record of $950,000;
- Closing prices in new developments also reached a record of $3,786,538 in the second quarter, 28 percent more than a year ago, and brought the overall average condo price 17 percent above last year’s level;
- South of 14th Street had the largest share of new development closings, accounting for 26.2 percent of second quarter 2016 activity;
- The highest percentage of resales in Manhattan were on the East Side at 21.8 percent, followed by Midtown at 20.4 percent;
- Resale apartments spent an average of 88 days on the market, 6 percent longer than the same time a year ago; and
- Buyers paid 98.2 percent of their apartment’s last asking price, down 1 percent from the second quarter 2015.
For more information, visit www.halstead.com.