Photo: Alan Strakey/Flickr
Manhattan housing market built momentum in the first quarter of 2017, driven by a surge in the resale submarket after being mostly tepid following the November election. In fact, resales accounted for the majority of all condo and co-op sales in the first quarter of 2017, according to a newly released market report by New York brokerage Douglas Elliman.
The overall number of resale transactions, including both co-ops and condos, increased 7.7 percent year-over-year to 2,429. More impressively, resales accounted for 84 percent of all condo and co-op sales in the first quarter of 2017.
And while the median resale price of a Manhattan home remained unchanged from last year at $950,000, the average resale price climbed 3.2 percent to almost $1.6 million in the first quarter.
Manhattan resale listings were up 4.2 percent year-over-year in the first quarter. Homes spent an average of 90 days on the market, up from 78 days recorded the same time last year.
Driven by the spike in the resale market, overall sales edged higher in the first quarter — after falling year-over-year the prior two quarters. The average sale price, including both new and resale condos and co-ops, rose 2.6 percent to $2.1 million, with the average price per square foot increasing by nearly 4 percent to $1,778. The average price and and average price per square foot set records in the first quarter due to legacy contracts, says the Elliman report.
New development sales dropped 25.4 percent from last year in the first quarter, while both average and median prices recording year-over-year increases. The average price rose 23 percent to $4.8 million and the median price jumped 4.9 percent to $2.8 million in the first quarter. New developments spent an average of 241 days on the market — nearly twice as long as last year.
Meanwhile, the median sale price, including both new and resale co-ops and condos, dropped 3.3 percent from last year in the first quarter — following two consecutive months of declines.
Listing activity was up 6.6 percent year-over-year, and units spent an average of 108 days on the market — up 15 days from last year.
Luxury listing inventory, which is homes priced at $4 million and above, dropped 4.4 percent year-over-year in the first quarter. Luxury units spent an average of 172 days on the market, up just over 41 percent from last year.
And the slowdown in the luxury submarket is “good for overall market affordability,” said Garrett Derderian, Director of Data and Reporting at New York brokerage Stribling & Associates, in a separate report also released today.
”We’re seeing inventory slowly rise. We’re seeing bidding wars decline. We’re seeing pricing move sideways,” Jonathan Miller, President and CEO of Manhattan real estate appraiser Miller Samuel and author of the Elliman Report, told The Real Deal.
Miller says that those are the elements of a stabilizing Manhattan market, noting that it’s “resetting from a couple of years ago, when there was a more lot more euphoria.”
Derderian indicated that with more inventory available at more favorable prices, homebuyers have the ability to shop around for “something special.”
Click here to read the entire Elliman report.