Manhattan apartment prices rose 9 percent year-over-year in the fourth quarter of 2016 to an average $2,110,566, despite a decline in sales, according to Halstead’s Fourth Quarter 2016 Market Report. The median apartment price, per the Report, was $1,075,000.
“While the fourth quarter posted record pricing for Manhattan apartments, the increase was driven by luxury new development closings which do not necessarily reflect current market conditions,” says Diane Ramirez, chairman and CEO of Halstead Property. “The resale market is softening, with average resale price slightly lower than a year ago, homes spending more time on the market, and sellers becoming more willing to negotiate. This is particularly true at the high-end of the market, where we are seeing the effects of increasing inventory. For sellers, evaluating comparable closed transactions and pricing correctly—and accordingly—is more important than ever.”
More highlights from the Report include:
- The average resale price slipped 1 percent from a year ago to $1,512,074, falling for the second straight quarter, while the median resale price declined to $920,000, a figure that is still 2 percent higher than a year ago;
- Small apartments continue to show strength in the co-op market, as only studio co-ops posted a higher average price than in the fourth quarter of 2015;
- Resale condo prices were flat over the past year, averaging $1,992,906 in the fourth quarter, with studios being the only size category to see an increase in their average price;
- The average new development price rose 51 percent over the past year to a record $4,709,602 and brought the overall average condo price to $3,143,441, a 22 percent jump above last year’s level;
- South of 14th Street had the largest share of new development closings, accounting for 34.3 percent of fourth quarter 2016 activity;
- The highest percentage of resales in Manhattan were also South of 14thStreet at 20 percent, followed by the East Side at 19.9 percent;
- Resale apartments spent an average of 88 days on the market, 10 percent longer than the same time a year ago; and
- Sellers received 98 percent of their last asking price, down from 98.7 percent in the fourth quarter of 2015.
The Report is based on 2,105 reported Manhattan apartment sales.
For more information, please visit www.halstead.com.
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