The Manhattan Real Estate Market median and average sales price, as well as the average price per square foot, reached the highest levels recorded in 27 years in Q4 2015. The resale market remained tight with low inventory, fast pace and rising prices. New development closings are on the rising as well. While many regions are suffering enormous instability, NYC, in contrast, is one of the last bastions of stability. In 2015, Manhattan saw record job growth and the highest number of people employed in history. We expect similar market conditions to carry over into 2016.
- As of Q4 2015, the Average price per square foot of Re-sale condos rose 8% to $1,788, up from $1,615 the same quarter last year, as months of supply rose to a still tight 5.8 months.
- The Average price per square foot of New Development condos declined by 17% to $2,142, as more mid-market and affordable luxury new development product came on the market. In contrast, last year’s new development sales activity included many closings from very expensive ultra-luxury and super-luxury buildings absent this quarter. Months of supply for new development declined to only 3.4 months.
- The Average price per square foot of Luxury, defined as the top 10% of all closed sales in terms of price, also declined by 8% to $2,649, as the sales mix in the quarter didn’t comprise as many units from ultra-luxury and super-luxury buildings. The Luxury entry threshold rose to $3.99 million up from $3.35 million in prior year quarter.
- According to Streeteasy “Non-Luxury homes in Manhattan saw strong appreciation. While the luxury market in Manhattan has begun to waiver, moderately priced homes (between roughly $525,000 and $1.3 million) have experienced strong price appreciation recently as buyers chase a dwindling amount of supply on the market. The median resale price for homes in the second and third tiers grew 6.9 percent and 7.0 percent in the last year, respectively.”