NEW YORK, NY - While median pricing for co-ops is at its highest level ever, it’s still less than two-thirds the median price for resale condos, and less than half the median price for new development condos (which trade on average 57% higher than resale condos). Increasing costs of acquiring land/development sites pushes the need for a higher price to produce attractive returns. To achieve this higher pricing, developers are pulling out more stops in materials, design, finishes and amenities. Manhattan at lower price points has a dearth of inventory and speed of execution, while at higher price points inventory is robust and properties take longer to sell. Overall absorption rate is 9.2 months—technically indicating a buyer’s market. This is highly variable depending on configuration and neighborhood.
- New units coming on the market are more expensive, and it’s more expensive to trade up, creating a scarcity in lower-priced product: total available listings <$500,000 comprised only 11.3% of the market, the lowest share ever
- The market’s efficiency is proven again with average time on the market 40 days: this deviates significantly for 4BD+ (67 days) and $10M+ (111 days)
- Despite indications of larger unit mix market saturation, inventory of 3BD and 4BD+ units increased 48.4% and 21.9% QOQ as developments planned 12+ months ago came to market
- Upper Manhattan saw price increases of over 20% QOQ / 8% YOY--this followed a surge in Brooklyn pricing driving buyers to this area
This year has shown widely diverging submarkets and thus average indicators become less instructive. Consider first the data and trends within specific market sectors. For more details, please see the comprehensive Compass 2015 Second Quarter Market Report.
About Compass
Launched in 2013, Compass is a technology-driven real estate platform with offices in New York City and Washington, DC. Compass provides comprehensive brokerage services, combining exceptional agents with best-in-class technology to make the process of buying, selling, or renting a home intelligent and seamless. For more information, please visit www.compass.com.