Manhattan Real Estate Sales Are on the Rise
By Vittorio Hernandez | July 4, 2014 4:01 PM EST
The Manhattan spring market posted very activities and generated more sales compared to the same period last year, brokerage firms reported. Douglas Ellman Real Estate said although inventory has been rising since reaching an unprecedented low at the end of 2013, the supply of apartments for sale still remains unusually low.
"We saw the highest number of listings sell at or above their asking price in nearly six years," Douglas Elmman's spring report said. It added, "Sales have been rising for nearly two years and the co-op market has been particularly strong this year. Increasing prices have incentivized additional buyers to consider co-ops due to their greater affordability. We expect the improving economy, low mortgage rates and high international demand to continue to drive the market in the coming quarters."
In the report, the brokerage firm noted the number of listings rose by 18 per cent to a still-low 5,659 properties. However, the number of sales rose for the seventh straight quarter, and buyers continue to struggle with bidding wars: 45.9 per cent of listings found takers at or above the asking price, the largest market share in the past six years. And average prices are still stuck in $1.7 million.
"Manhattan housing prices continued to press higher, driven by low inventory and seven consecutive quarters of year-over-year sales growth. Mortgage rates have drifted lower, nearly returning to their prior year levels while the local economy has added jobs and international demand for product has been relentless. The luxury market showed the most price gains as more new development product has begun to close," the report said.
Newly built condos remained, for the most part, a subset of the luxury market. After trailing the condo market in terms of sales and price trends, the co-op market has rebounded in the past several quarters as consumers increasingly seek out greater affordability. Manhattan median sales price increased 5.2 per cent to $910,000 from the prior year quarter. Much of the gain came from the co-op market, which comprised 59.5 per cent of sales and a 9 per cent rise in median sales price. The median sales price of a condo edged 0.8 per cent higher over the same period.
The average sales price and average price per square foot of all Manhattan apartments showed greater gains of 17.9 per cent and 10.4 per cent, respectively, over the same period. These gains were influenced by increases in the luxury and new development markets as bigger, higher quality product entered the market. The price rise of these indicators was partially attributable to more square footage within the units sold, rather than a shift in the mix to more bedrooms.
The 15 per cent market share of 3-bedroom and 4-bedroom sales remained unchanged from the prior year quarter. However, the average square footage of a re-sale increased 6.8 per cent to 1,277, while the average square footage of a new development sale rose 24.9 per cent to 1,853 over the same period.
Halstead Property, in its second quarter Manhattan Property report added apartment prices averaged $1,700,426 in Manhattan in the second quarter, virtually unchanged from the prior quarter's record level, but 19 per cent higher than a year ago. New developments continued to play a leading role in the market, accounting for 10 per cent of all sales while posting an average price of $3,480,906. Overall, there were 9 per cent more closings reported than in the second quarter of 2013.
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