Manhattan Market Report
Q4 2014 MANHATTAN MARKET REPORT
Manhattan prices showed significant gains from the prior year, driven by low inventory and higher than average demand. One of the main drivers of demand has been high local employment growth. And, while low mortgage rates have also stimulated sales, 62% of condos sales were paid for in cash. While listings for sale are up considerably over prior year, they are still one-third below the long term average, suggesting that we will continue to be in a sellers market for some time. Ultra high-end closings will begin to skew pricing statistics higher in future market reports, as One57 closings accelerate and others come online.
- Price per square foot for condos rose 9.9% year-over-year, rising to $1,552.
- Condo closed sales activity declined 13% year-over-year.
- Listing inventory climbed 39%, however, much of this increase is in new developments, which in many cases won’t be ready for one or two years.
- New development closed-price-per-square-foot averaged $1,871 in the quarter; however, many of these contracts were entered into months or years ago. Today, we are seeing new developments being contracted at a minimum of $2,000 per square foot, with most at $2,500 per square foot and up.
- Luxury price per square foot rose to $2,747 from last year, with a Luxury entry threshold at $3.35 million.
- Luxury sales activity declined 13.1% and inventory rose a whopping 47%. Most of this increase is in the new development arena, as developers have been targeting only this market segment.
- Listing discount for condos was 3.2% from list price. Luxury discount was 2.4%.
- Rental vacancy in Manhattan for November was 2.3%.