Manhattan Monthly Market Snapshot - November 2017

November sales activity was down year-over-year for both condos and co-ops. Pricing marked gains across the co-op market in excess of 20% for average and median price over low figures last year, while condo average price declined and median price only increased slightly. Price per square foot rose for co-ops, but dropped 2% for condos. Continuing the trend of prior months, inventory increased by double-digits versus last year, with co-op inventory growth outpacing condos for the sixth consecutive month. Days on market moved by double-digits, but in opposite directions for condos and co-ops, declining for condos, and rising for co-ops. Negotiability remained relatively stable for condos, and was nearly level versus last month and last year. Alternatively, co-ops while still having more limited negotiability, saw deeper discounts than last year.


Brooklyn Monthly Market Snapshot - November 2017

During November, the Brooklyn market experienced its first annual decrease in sales in nine months, down 6% versus last year. The average and median sale price rose 19% and 20%, respectively as the number of sales over $2MM more than doubled versus last year. Average price per square foot was $854, up 5% year-over-year. This was due to the increase in price per square foot for one, two and three plus bedrooms. Negotiations were only slightly deeper than last year as the difference from last ask price to sale price was 1% below the average asking price. The average days on market figure of 76, while the highest since 2014, was skewed by a handful of homes that finally sold after sitting on the market.


 
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Quarter 3 2017 - Brooklyn

This quarter the insatiable demand for home ownership in Brooklyn was confirmed. Buyers not only responded favorably to Brooklyn’s building boom, but the speed at which both new construction and resale apartments were absorbed this quarter was striking. Third Quarter 2017 proved to be the strongest quarter for closings since 2008. Buyers continued to expand their neighborhood selections at various price segments of the market. The $1,000,000 to $2,000,000 price range claimed more sales than any other prior quarter, as did sales in the $500,000 to $750,000 as new offerings in South Brooklyn motivated buyers. Sellers have struggled to keep up with the pace and consequently, there were large declines in inventory throughout all of 2017.


 
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Quarter 3 2017 - Manhattan

The Manhattan market has now experienced two consecutive quarters of annual growth in closed sales as a result of improved contract activity during first six months of 2017 versus 2016. In Third Quarter 2017, the Manhattan market saw closings rise by 3% year-over-year to 3,703 sales, primarily due to strong performances in the new development and resale co-op markets. Signed contracts fell by 4% yearover-year, to 2,468 contracts signed. An undersupplied co-op market, delayed new development launches, adjustments in foreign capital controls, and the lack of lower-priced inventory in the resale condo market have affected marketwide absorption.


 

Quarter 2 2017 - Brooklyn

Brooklyn’s second quarter maintained the pace set at the start of 2017 and improved on the sales activity recorded in Second Quarter 2016. Challenged by limited resale inventory, buyers turned to new development properties in numbers significant enough to boost marketwide sales and prices overall. But more aggressive pricing and the lack of low-priced inventory also generated some buyer resistance; the average days on market increased by two weeks compared to a year ago.


 

Quarter 2 2017 - Manhattan

Second Quarter 2017 closed sales increased by 2% year-over-year, the first increase in closed sales since Fourth Quarter 2015. With the increase in closed sales also came record high price figures that surpassed previous records set in First Quarter 2016. In addition to being up 2% year-overyear, closed sales rose 31% versus First Quarter 2017. Resale co-op and new development sales drove the increase, with closed sales rising year-over-year by 8% and 2%, respectively.

 


 

Quarter 1 2017 - Manhattan

The first quarter often sets the tone for the rest of the year and this quarter proved the Manhattan market is off to a positive start in 2017. Contract activity increased year-over-year for the first time in six quarters, registering a 3% increase versus First Quarter 2016 and a 5% increase versus last quarter.


 

Quarter 1 2017 - Brooklyn

Springtime came early to Brooklyn as First Quarter was the strongest first quarter in six years in terms of sales. Improved consumer sentiment and the expectation of rising interest rates on the horizon motivated buyers. This quarter also continued the streak of year-over-year price gains seen throughout all of 2015 and 2016. Demand for new developments, particularly larger residences at price points rarely offered in Manhattan, drove overall prices higher.

 

2016 Manhattan Year End Review
 

Manhattan residential real estate saw a mixed market in 2016. While closings were down 11% year-over-year, average price per square foot, average price, and median price all reached record highs for the second year in a row. Average price per square foot in 2016 was up 12% year-over-year to $1,841, average price increased 12% to $2.045M, and median price increased 11% to $1.100M. Overall inventory continued to rise versus 2015, up by 16%.


2016 Brooklyn Year End Review

Brooklyn’s performance this year was solid despite lower sales and constricted inventory in lower price points. Record prices were set this year, mainly due to a surge in sales over $2MM and growth in new development sales. While apartment sales overall were down 14% versus last year, closings over $2MM were up 39%. Average price was 16% higher than a year ago and average price per square foot grew 10% to $884 per square foot. This year, median price finally surpassed its previous high set in 2008.


 

Quarter 4 2016 - Manhattan

2016 ended much as it began – with a variety of mixed signals indicative of shifting market conditions. Average price per square foot was up 6% year-over-year. But its 1% quarter-over-quarter change reflects the steadying of price per square foot since the beginning of the year.


 

Quarter 3 2016 - Manhattan

Prices are high, but past the peak. Prices were up versus last year, and still occupy near-record levels. The median price in Manhattan is $1.1 million (up 10% vs a year ago) and the median price per square foot is $1,314 (up 2% vs the same period). But it now appears that First Quarter 2016 will be the peak moment of the post-2009 growth period, as the Third Quarter marked the second straight quarter of stagnant or lower prices in most categories.


 

Quarter 2 2016 - Manhattan

Prices coming under pressure. Though still at near-record levels, the average sale price in Manhattan retreated 6% from the $2.12 million high-water mark it achieved in the First Quarter. Across the board, prices were up versus Q2 15, but were slightly lower or unchanged versus Q1 16. New development condos and re-sale co-ops both rose in value thanks to their tight inventory, but re-sale condominiums contracted 5% in average price per square foot.


 

Quarter 1 2016 - Manhattan

New record prices.  For the first time ever, the average sale price in Manhattan surpassed $2 million thanks to significant high-end sales. The median price reached $1,160,000 (up 22%), and the median price per square foot $1,374 (up 11%). Fewer closings and fewer contracts. The pace of sales is slowing appreciably. There were 5% fewer closings this quarter versus the same time last year, and 11% fewer signed contracts.


2015 Manhattan Year End Review


Manhattan residential real estate had a robust year in 2015. Closings were up year-over-year and average price per square foot, average price, and median price all reached record highs. Average price per square foot in 2015 was up 5% year-over-year to $1,645, average price increased 6% to $1.787M, and median price increased 8% to $990K. Overall condo inventory steadily increased during the year as a result of new development introductions, but co-op inventory reached a near record low. 


2015 Brooklyn Year End Review

Brooklyn has had a continued streak of increasing sales, improving year after year since 2012. Demand was remarkably strong in Brooklyn, record high prices were achieved and inventory this year was overall higher than last year. Average price was 10% higher than a year ago and average price per square foot grew 13% to $805 per square foot. While the number of listed apartments exceeded 2,000 in three out of four quarters during 2015, rebounding from the historic low in 2013, inventory was still nearly 32% lower than levels reached in 2011. With the rise in new development introductions, total condo listings have grown and now represent more than half of all inventory.