Manhattan And Brooklyn Townhouse Sales Stall
Posted by Ashley Murphy — July 23, 2018
NEW YORK, NY - Stribling & Associates, a top New York residential brokerage, today releases the first half 2018 townhouse sales report. The report, which covers one-three family home sales in Manhattan and Northwest Brooklyn, showcased a market with increasing inventory and decreasing sales, as properties spent more time on the market. However, discounts were not spread evenly throughout the city.
"The townhouse market, like the market as a whole, has not been immune to stagnating sales amid a supply increase," said Garrett Derderian, Director of Data & Reporting at Stribling. "Two prime townhouse markets, the Upper East Side and Downtown, both saw sales volume decline despite an increase in total sales." Derderian cited a yearly reduction of 6% in sales volume in the Upper East Side, despite a 5% increase in sales, and a 25% decrease in volume Downtown, where the number of sales grew 11%.
The report highlighted that market-wide, the average sales price is 42% less than the average inventory price. Similarly, the median sales price is 34% less than the median inventory, while the average sales PPSF is 24% lower. "The townhouse market is a buyers' market. Virtually all deals see some negotiation. For the seller, it is a matter of pricing to where the market is going, rather than where it has been."
The report noted that while virtually all markets saw a decrease in total sales, more affordable areas continued to show improvements, particularly in the sub-$4 million market. Upper Manhattan, the most affordable market in the borough, recorded a 4% increase in the average sales price ($2,943,000), and an 8% increase in the median sales price ($2,700,000), coupled with a 2% rise in the average PPSF to $759. Likewise, Northwest Brooklyn saw a 5% increase in average sales price ($3,412,834) and 4% rise in its median price ($3,022,329).
To get a sense of current conditions, Derderian pointed to contracts signed in the first half of the year, "When looking year-over-year, contract price metrics are up overall, with the number of signings increasing 1%. While not a large change, this does indicate the market, in terms of total sales, is maintaining." Derderian also specified the average contract price, which reflects that last known asking price, was up 10%, while the median price increased 17%. "While the final sale prices are sure to be lower than the contract numbers, it is still a promising sign buyers are engaged with the market."
Highlights from Stribling & Associates 1H 2018 Townhouse Report:
- There were 504 townhomes on the market, up 17% from one year ago
- There were 229 properties in contract, a 1% yearly increase
- There were 202 home sales, down 17% year-over-year
- The average listing price fell 16% to $8,834,339
- The average sales price fell 1% to $5,153,906
- The median listing price fell 20% to $5,197,500
- The median sales price increased 4% to $3,434,500
- Total days on market increased 22% to 121
- Listing dollar volume decreased 2% to $4.45 billion
- Sales volume decreased 1% to just over $1 billion
- The Upper East Side average sales price declined 10% to $12,169,886, and the median sale price fell 8% to $8,450,000
- Upper East Side days on market increased 173% to 189 days
- The Upper West Side saw a 38% increase in sales, and a 44% reduction in sales volume
- Midtown East saw 6% less listings, and a 24% decline in inventory volume
- Midtown East days on market increased 148% to 253 days
- Downtown saw 11% more home sales but a 25% drop in sales volume
- Downtown had a 2% increase in available homes, but a 3% decrease in total volume
- Upper Manhattan recorded sale price gains across all metrics, with the average price increasing 4% to $2,943,000 and media sales price up 8% to $2,700,000
- Upper Manhattan days on market increased 35% to 172 days
- Northwest Brooklyn saw a 22% decrease in sales and an 18% decrease in sales volume
- Northwest Brooklyn saw a 24% increase in inventory and a 21% increase in total listing volume
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout five locations in Manhattan, Brooklyn, and Long Island City. 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.