NEW YORK, NY - Stribling & Associates, a premier luxury New York residential brokerage, today releases the Year End 2017 Luxury Report. The report covers sales, contracts and active inventory, priced $5M and above, in both Manhattan and Brooklyn.
"In 2017, the luxury market reflected a slight softening after several years of rapid expansion, with a peak in 2016," said Kirk Henckels, Vice Chairman, Director of Stribling Private Brokerage, the luxury division of Stribling & Associates that provides sellers of truly exceptional properties with unique access to a global audience of ultra-high-net-worth buyers.
Henckels went on to explain that while there has been softening in the most recent year, it was not spread evenly among property types. "Since 2014, sales of condominiums have increased by 74%, while cooperatives declined by 25%," he revealed. A large portion of the condominium increase was for new development properties, which saw explosive growth in recent years. Conversely, the decline in co-op sales can be attributed to a larger change in buyer patterns.
"Not only have buyers' preferences shifted from cooperatives to condominiums, but they have also shifted from uptown to downtown," Henckels informed. This is evident within the report, where in 2017 474 of all luxury condo sales, or 57%, took place in the downtown market. Despite the shift, Henckels said cooperatives are becoming a value and sellers have become more realistic in terms of pricing. In 2017, the report shows an increase in the total number of cooperative contracts from 2016, whereas the number of condominium contracts declined.
The report also highlights that while the downtown market is a top choice of many buyers, some have also crossed the river into Brooklyn. "Over the past several years, we have started to see the real presence of an ultra-luxury market in Brooklyn," said Garrett Derderian, Stribling's Director of Data & Reporting. "For some buyers, the lure of new construction, slightly more space, or stellar views of Manhattan is enough to convince them to make the leap," he stated.
While the Brooklyn luxury market is still small in terms of deal count, taking the same share as the Financial District/Battery Park City market in Lower Manhattan, price growth in 2017 outpaced much of Manhattan. The average sale price rose 6% to $6.1M while the average price grew 17%, the most of any market, to $7.1M.
When looking at the nature of ultra-wealthy buyers and the market overall, Henckels says "The evolution of buying patterns among property type, style and location in the first quarter of the twenty-first century is not unlike the paradigm shift that occurred in the first quarter of a century earlier, when the wealthy left their ornate Midtown mansions to live in more tailored Uptown apartment buildings. The humorous aspect is that in both cases, the "old guard" were/are horrified and miss the point: Change is inevitable."
Highlights from Stribling & Associates 2017 Luxury Report:
- Median sales price was $7,226,495
- Average sales price was $9,515,841
- Average price per square foot was $2,995
- Average days on market was 183
- There are 11.5 months of supply, up from 10.8 last year
- 66% of condo inventory was priced between $5-10M
- 70% of co-op inventory was priced between $5-10M
Recorded Condo Sales:
- There were 838 condo sales, down 5% from 882 in 2016
- The median sale price was $7,280,606, down 2% year-over-year
- The average sale price was $9,662,047, down 4% year-over-year
- The average PPSF was up 3% to $3,036
- 73% of sales were priced between $5-10M
- 57% of sales were located downtown
- Brooklyn registered 3% of luxury sales
Recorded Co-op Sales:
- There were 182 co-ops sales, the same number as 2016
- The median sale price increased 3% to $6,795,000
- The average sale price increased 1% to $8,842,651
- 80% of sales were priced between $5-10M
- 54% of sales were located on the Upper East Side
- 23% were located on the Upper West Side
- Midtown recorded the highest average price, at $9.95M
- The largest properties were located on the Upper East Side
To view the full report, go to: http://www.stribling.com/market_reports
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.