Manhattan Market Report
Q2 2014 MANHATTAN MARKET REPORT
Manhattan sees modest price and sales activity increases, while inventory finally jumps on new development listings Demand continues to be very high for Manhattan condos based on historical levels. While condo inventory finally rose in Q2, the vast majority of the increase was attributable to new developments, most of which will be ready for occupancy in 2015 or 2016. Accordingly, the New York market remains very competitive and all-cash deals rule, making up 45% of all sales. We expect the sales pace to continue. In addition, buyers who want to lock into historically low mortgage rates should get off the sidelines, given all the good news going on in the US economy, such as GDP growth of 4% in Q2 and consistent job growth, with over 1.3 million jobs created in the last 6 months, many of them in New York City and Miami. Mortgage rates will be rising soon.
- Price per square foot for condos rose a modest 7.5% year-over-year, rising to $1,484.
- Sales activity rose 2.8%, on top of a very high prior year sales level.
- New development inventory increased 68.6%, making up most of the increase in inventory.
- Luxury price per square foot rose to $2,735, with a Luxury threshold at $3.25 million.
- Luxury sales activity rose 6.4% and inventory rose 20.4%.
- Rental vacancy for June was very low at 1.64%.