Manhattan Market Report

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Q4 2012 MANHATTAN MARKET REPORT

According to the Q4 2012 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s second-quarter performance can be characterized by:

  •    Plummeting Condo Inventory
  •    Stable to Modest Growth in Prices and Stable Sales Activity
  •    Market is Poised for Price Increases Given the Lowest Level of Inventory in over 12 Years
  •    Luxury Property Sales Volumes Up Significantly in the 4th Quarter as a result of Sellers taking advantage of lower 2012 Capital Gains Tax rates.

CONDOS

NYC Condo prices increased 0.5% to $1,301 per square foot from $1,295 in the same prior-year quarter.
Sales activity increased by 2.5% over the same prior year quarter, with the absorption rate improving to only 6.6 months down from 10 months.
Listing inventory plummeted by 36.9% and listing discounts fell to only 3.5% of the purchase price compared to 4.9% in the prior year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

The average per square foot price of Luxury Property dipped slightly by 1.4% over the prior year quarter to $2,136.
Sales activity was up significantly in the last quarter of 2012, climbing by 29.4%. Many owners were incentivized to sell in the last quarter of 2012 and take advantage of the lower capital gains tax rate of 15%. This will likely cause a decline in Q1 2013 Luxury sales
Listing inventory decreased by 9.6% over the same prior-year quarter and listing discounts for luxury properties was only 3.5%.

NEW DEVELOPMENTS

New Developments prices decreased by 3.2% to $1,349 per sq. ft., compared to the same prior-year quarter.
Sales activity for new developments increased by 3.5%.
Listing inventory declined significantly – down by 40.8% compared to the same prior year quarter. Since the credit crisis, new development listings have fallen 63.4%. The average listing discount was only 3.1%.

Q3 2012 MANHATTAN MARKET REPORT

According to the Q3 2012 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s second-quarter performance can be characterized by:

  •    Higher condo prices, on a per square foot basis
  •    Low condo inventory – a 23% drop over prior year
  •    Highest level of coop sales in five years
  •    Total number of sales declined from prior year quarter, but remained brisk

CONDOS

The average price of NYC Condos increased 7.7% to $1,293 per square foot from $1,233 in the same prior-year quarter.
Sales activity declined by 31.6% over the same prior year quarter, although the absorption rate was strong, with only 6.6 months of supply at current sales rates. In addition, Coop activity increased by 31%, offsetting the decline in Condo sales activity.
Listing inventory declined by 23.4% and listing discounts rose to 6.4% compared to 5.7% in the same prior-year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

The average price of a Luxury Property declined by 2.6% to $2,021 per square foot from $2,074 in the same prior-year quarter.
Sales activity declined by 5.1% over the same prior-year quarter.
Listing inventory remained flat over the same prior-year quarter and listing discounts for luxury properties rose to 9.7% compared to 4.4% in the same prior-year quarter.

NEW DEVELOPMENTS

The average price for New Developments increased by 15.5% to $1,422 per sq. ft., compared to the same prior-year quarter, as the sales trend toward larger units continued and few new listings of new developments hit the market.
Sales activity for new developments declined by 8.5%, as much of the limited new development inventory in Manhattan was absorbed during the year.
Listing inventory declined 27.7%, a significant decline over the same prior-year quarter. Listing discount rose to 9.7% compared to 6.1% in the same prior-year quarter.

Q2 2012 MANHATTAN MARKET REPORT

According to the Q2 2012 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s second-quarter performance can be characterized by:

  •    Stable Prices and Sales Activity
  •    Luxury Property Price Increases
  •    Low Inventory
  •    Shift to Lower Priced Entry Level Apartments, as record Low Interest Rates fueled first time buyer demand

CONDOS

The average price of NYC Condos increased 1.6% to $1,201 per square foot from $1,182 in the same prior-year quarter.

Sales activity declined by 11.8% over the same prior year quarter, although the absorption rate improved, with only 8.4 months of supply at current sales rates. In addition, Coop activity increased by 10.9%, offsetting the decline in Condo sales activity.

Listing inventory declined by 14.7% and listing discounts rose to 6.8% compared to 2.3% in the same prior-year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

The average price of a Luxury Property increased 7.4% to $2,133 per sq. ft. from $1,968 in the same prior-year quarter.

Sales activity was flat over the same prior-year quarter.

Listing inventory decreased by 8.2% over the same prior-year quarter and listing discounts for luxury properties was negligible, at only 1%, compared to 11.1% in the same prior-year quarter.

NEW DEVELOPMENTS

The average price for New Developments decreased by 5.9% to $1,092 per sq. ft., compared to the same prior-year quarter, as sales activity shifted to entry level units and no new development inventory hit the market.

Sales activity for new developments declined by 25%, as much of the limited new development inventory in Manhattan was absorbed during the year.

Listing inventory declined 20%, a significant decline over the same prior-year quarter. Listing discount rose to 10.8% compared to 6.2% in the same prior-year quarter.

Q1 2012 MANHATTAN MARKET REPORT

According to the Q1 2012 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s first-quarter performance in comparison to the same prior year quarter can be characterized by:

  • Price Increases
  • Declining Activity, Attributed to Declining Inventory
  • Pick Up in Sales of Both Entry Level and the Most Expensive Apartments

CONDOS

The average price of NYC Condos increased 8.3% to $1,317 per square foot from $1,218 in the same prior-year quarter.

Sales activity declined by 8% over the same prior-year quarter.

Listing inventory declined by 6% and listing discounts declined to 6.6%, compared to 7.7% in the same prior-year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

The average price of a Luxury Property increased 9.2% to $2,073 per sq. ft. from $1,899 in the same prior-year quarter.

Sales activity declined 3.3% over the same prior-year quarter.

Listing inventory increased by 18.2% over the same prior-year quarter, as re-sale inventory increased 25.1% and new development inventory increased 4.4%. The average listing discount for Luxury Properties was negligible, at only 1.2%, compared to 5.6% in the same prior-year quarter.

NEW DEVELOPMENTS

The average price of New Developments increased by 1% to $1,263 per sq. ft., compared to the same prior-year quarter.

Sales activity for new developments increased by 12.7%.

Listing inventory declined 11.7%, significantly lower than inventory in the same prior-year quarter.

Listing discount declined to 8.8% compared to 9.8% in the same prior year quarter.

Q4 2011 MANHATTAN MARKET REPORT

According to the Q4 2011 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s fourth-quarter performance can be characterized by:

  • Price Increases
  • Declining Activity
  • Declining Inventory

CONDOS

The average price of NYC Condos increased 8.1% to $1,295 per square foot from $1,198 in the same prior-year quarter.

Sales activity declined by 8% over the same prior year quarter.

Listing inventory declined by 4.6% and listing discounts declined to 4.9% compared to 10.4% in the same prior-year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

The average price of a Luxury Property increased 3.1% to $2,166 per sq. ft. from $2,101 in the same prior-year quarter.

Sales activity declined 12.6% over the same prior-year quarter.

Listing inventory increased by 7.7% over the same prior-year quarter and listing discounts for luxury properties was negligible, at only 1%, compared to 11.1% in the same prior-year quarter.

NEW DEVELOPMENTS

The average price for New Developments increased by 18.8% to $1,395 per sq. ft., compared to the same prior-year quarter. This increase is largely attributed to a large number of closings at several high-end new developments, such as the Laureate and The Aldyn.

Sales activity for new developments declined by 27.8%, as much of the limited new development inventory in Manhattan was absorbed during the year.

Listing inventory declined 23%, significantly lower than inventory in the same prior-year quarter.

Listing discount declined to 2.9% compared to 12.7% in the same prior year quarter.

Q3 2011 MANHATTAN MARKET REPORT

According to the Q3 2011 Manhattan Market Report by appraiser Jonathan Miller, Manhattan’s third-quarter performance can be characterized by:

  • Price Stability
  • Significant Price Increases in Luxury Properties
  • High Activity Levels Across All Categories
  • Declining Inventory

CONDOS

Average price per square foot increased 2.8% to $1,233 from $1,199 in the same prior-year quarter for NYC Condos.

Sales activity exploded by 33.4% to 1,789 units from 1,341 units in the same prior-year quarter. This is quite an achievement; however, a portion of this increase was the result of unusually low activity in the same prior-year quarter as homebuyers had taken advantage of a one-time federal tax credit stimulus in previous quarters that expired at the end of June 2010.

Listing inventory declined by 12.8%, significantly lower than inventory in the same prior-year quarter.

Listing discount declined to 5.7% compared to 8.8% in the same prior-year quarter.

LUXURY MARKET (TOP 10% OF ALL TRANSACTIONS)

Average price per square foot increased 9.3% to $2,074 from $1,897 in the same prior-year quarter – a significant price increase.

Sales activity increased by 16.9% to 311 units from 266 units in the same prior-year quarter.

Listing inventory was stable compared to the same prior-year quarter.

Listing discount declined to 4.4% compared to 7.3% in the same prior-year quarter.

NEW DEVELOPMENTS

Average price per square foot increased 1.1% to $1,231 from $1,218 in the prior-year quarter.

Sales activity was consistent with the same prior-year quarter at 577 units.

Listing inventory declined 23%, significantly lower than inventory in the same prior-year quarter.

Listing discount declined to 6.2% from 19.1% in the same prior-year quarter as new development inventory was absorbed at an accelerated pace.

Q2 2011 Manhattan Market Report

The release of the Q2 2011 Manhattan Market Report by Jonathan Miller reinforces what we have been seeing in the Manhattan marketplace over the last three months –a very stable and confident market.

Notably, the Manhattan market has seen respectable price increases (4.2% for Condos and 6.8% for Luxury), normal sales activity, declining inventory levels, and fewer discounts from list prices.  Here are some of the highlights around the Condo, Luxury and New Development markets:

CONDOS

Average price per square foot increased to $1,182 from $1,134, a 4.2% increase over the same prior year quarter for NYC Condos.

Average sales price rose to $1,756,424 from $1,702,079, a 1.3% increase over the same period last year.

Sales activity declined to 1,284 units from 1,553 units, an 11.2% decrease over the same prior year quarter. However, the current period activity is in line with historical levels and last year’s activity was inflated by the one-time federal tax credit stimulus that expired at the end of June 2010.

Listing inventory has declined significantly, by 11.2% over the same prior year quarter.

Listing discount declined significantly, with an average 2.3% discount from the last asking price. In the prior year quarter, the listing discount was 10.5%.

LUXURY MARKET

As for the Luxury Market (the top 10% of all transaction), the average price per square foot increased to $1,968 from $1,843, a 6.8% gain over the same prior year quarter.

Luxury Market activity decreased to 265 sales from 276 sales, a 4% decline over the same prior year quarter.

Luxury Market inventory remained flat over the same prior year quarter.

Listing discount declined significantly, with an average 2.3% discount from the last asking price. In the prior year quarter, the listing discount averaged 6.4%.

NEW DEVELOPMENTS

Average price per sq. ft. decreased to $1,160 from $1,180, a 1.7% decline over the same prior year quarter.

New development activity declined to 577 units from 622 units, a 7.2% decrease over the same prior year quarter.

New development listing inventory decreased significantly to 1,626 units from 2,067 units, a 21.3% decline.

Listing discount declined significantly to 6.2% in the current quarter compared to a 19.1% discount in the same prior year quarter.