NEW YORK CITY, NY - Stribling & Associates, a leading New York residential brokerage, today releases the fourth quarter Manhattan Market Report. The report, which covers the entire borough, showcased a market beset by uncertainty, as some areas performed well, while others suffered. The market was also affected by a glut of ultra-luxury inventory, and national issues, including new tax policy changes.
"Many buyers felt the market peaked in mid-2017, and prices have taken a hit since," said Garrett Derderian, Director of Data & Reporting at Stribling. "While this is true at a high level, we are still seeing signs of life in emerging areas, such as Midtown West and Upper Manhattan." Derderian cited upcoming developments in both markets that will be priced in the more affordable $1-3 million range, where buyers remain active.
The report noted that while the super-luxury market has seen price adjustments, resulting in a 5% drop in average sales price from this time last year, the bulk of the market remained flat in terms of pricing, or slightly up, year-over-year. "The biggest declines have come in the most expensive markets and price points, where a glut of new development afforded buyers more negotiating power, and the market responded. However, the median sales price of $1.05 million, while not a record, was up 5% from this time last year, highlighting strength in the middle market."
Derderian also pointed to total contract volume. "While there has been a decrease in prices, total contracts are up 7% from this time last year. Still, contracts signed above $10 million decreased by 21%." Accordingly, contract pricing, which reflects the last known asking price, did slip. "We saw the average price drop 8% to $2.1 million, and the median dip 3% to $1.2 million," Derderian observed.
As far as predictions for 2018, Derderian mentioned a possible rebound in pricing in the coming quarters. "We have yet to see several super-luxury projects initiate closings. When they start to come through, they will have an upward effect on pricing, even if it is not reflective of current market conditions."
Additionally, national issues are having an impact on the market. "Looking at the economics, the fourth quarter was plagued by the vagueness of the new tax policy, which for much of the quarter was not finalized. Now that the bill has been signed, consumers will be able to make a more informed decision. We anticipate more potential buyers coming off the sideline early next year."
Highlights from Stribling & Associates 4Q Manhattan Market Report:
- Median sales price was $1,050,000
- Average sales price was $1,931,999
- Average price per square foot was $1,469
- Average days on market was 99
- There are 5.5 months of supply, up from 5.1 last year
- 21% of inventory was priced above $5 million
Recorded Sales:
- There were 2,203 recorded sales to date, a 13% decrease from one year ago
- Co-ops made up the largest share of closings, with 52%
- Condos totaled 45% of all deals
- Condos were the most expensive, with an average PPSF of $1,693
- 1BR units captured 36% of all sales
- 4+BRs, with 5% sales, had the highest average PPSF of $2,142
- Studios were the only condo bedroom type to log improvements across all metrics
- 4+BR co-op units saw all price metrics decline; the median declined 32%
- Downtown captured the greatest share of closings, with 25%, and was the most expensive market with an average PPSF of $1,715
- Midtown West and Fidi/BPC condos showed the most appreciation
- Upper East Side co-ops declined across all price measures
Contracts Signed:
- Total contracts signed increased 7% to 2,798
- 1BRs made up 37% of all contracts signed
- Condo studios saw the greatest price improvements
- Co-ops priced between $10-20M saw the biggest declines
- Downtown captured the most contracts signed, with 29%
- Midtown West saw the least number of contracts, at 5%
- Downtown averaged the highest PPSF, $1,909, and largest apartments, 1,494 square feet
- Upper Manhattan condos saw the greatest price appreciation, with the median up 18% and average up 21%
- Upper Manhattan co-ops saw an average PPSF increase of 25%
Inventory:
- The number of available listing increased 9% year-over-year to 6,182
- Condo units made up the largest share of inventory, with 57%
- Condo units had an average PPSF of $2,129
- Co-op units were the most affordable, with an average PPSF of $1,306
- 2BRs made up 29% of inventory
- The $1-3M bracket totaled 38% of inventory
- There was more inventory priced above $10M than below $500K
- Midtown West condos had a median rise of 18% to $1,767,500
- Upper East Side co-ops were the most expensive, with a median price of $1,677,000, a 34% year-over-year increase
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout three locations in Manhattan and one in Brooklyn. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.