After pending transfer and mansion tax increases led to a record-setting June, high-end closings fell sharply in the third quarter, according to Halstead’s Third Quarter 2019 Market Report. The volume of Manhattan apartment sales dropped 16 percent from the third quarter of 2018, with sales over $5 million falling 48 percent. This pushed the average apartment price down to $1,652,565, 13 percent below a year ago. The Halstead Market Report is based on 2,114 third quarter sales, 14 percent fewer than the same period last year.
“Increases in transfer and mansion taxes starting July 1 pushed buyers and sellers to close before the end of June. Unsurprisingly, this led to higher-than-usual activity in high-end sales last quarter. Third quarter data reflects a more accurate snapshot of the current market: continued price correction. We remain in a buyer’s market, and looking toward the end of the year, we expect sellers to price sharply and realistically to get deals done,” says Diane M. Ramirez, chairman and CEO of Halstead.
Other noteworthy findings from Halstead’s Third Quarter 2019 Market Report revealed:
- Resale apartment prices averaged $1,359,654, its lowest level in almost five years;
- Co-op prices averaged $1,196,308, down 10 percent compared to the third quarter of 2018;
- Fewer luxury sales brought the average condo price 14 percent lower than a year ago, although most size categories saw price increases;
- New development closing prices averaged $3,362,584, which was 9 percent lower than the same time last year;
- In the third quarter, 44 percent of new development closings occurred south of 14th Street;
- Looking at only co-op resales, the average price fell across all size categories, leading to a 10 percent decline in the overall figure;
- Condo resale transactions in the third quarter saw an average price of $1,677,234, which is 21 percent less than a year ago, and the lowest average price in seven years;
- Resale apartments sold in the third quarter spent an average of 114 days on the market; while down from the previous quarter, the figure was 15 percent higher than a year ago;
- On average, closing prices were 96.8 percent of an apartment’s last asking price, down from 97.2 percent a year ago;
- Both the average and median loft prices per square foot declined compared to the third quarter of 2018; and
- The highest percentage of resales in Manhattan was on the East Side at 24 percent, followed by Downtown (south of 14th Street) at 19.3 percent and Midtown at 19.2 percent.
For more information, please visit www.halstead.com.