TOWN Residential, New York’s leading luxury real estate services firm, has released The Aggregate – the firm’s quarterly residential market report. During the first quarter, the overall Manhattan market showed continued strength in sales prices on both quarterly and yearly measures, despite an increase in median days on the market. The average sales price increased by 5.8% since last quarter and by 1.9% since last year for this quarter’s total of $2,218,136.
Market-wide, the median sales price also increased by a significant 10% quarter-over-quarter and a slight 0.4% year-over-year, coming in at $1,155,611. The average price per square foot increased by 1.8% over the quarter to $1,539, which is 3% lower than the price paid during the same time last year. Modest market-wide quarterly gains in median sales prices were reported in the 1- and 2-bedroom categories, with the 1-bedroom segment increasing by 4% to $840,000 and the 2-bedroom segment increasing by less than 1% to $1,705,000.
Similar to the overall sales market, the condo market saw improvement on a quarterly basis, with average and median sales prices both rising by 3.7%. Across Manhattan, 2-bedroom condos made up 36.2% of all sales, followed closely by 1-bedroom condos making up 35.1% of all sales.
At a median price of $766,250, the co-op market saw slight improvement on both quarterly and yearly measures, increasing by 1.5% since last quarter and by 1% since last year. Average sales prices, however, decreased by just under 2% since last quarter and by 3.2% since last year for this quarter’s total of $1,214,476.
“Even though the $1,000,000-$3,000,000 market sector was strongest this past quarter, we can expect rising mortgage interest rates and the much lower luxury rentals to put downward pressure on this sector in the coming quarters,” said Andrew Heiberger, founder and CEO, TOWN Residential.
Auditing the luxury market specifically, 57 transactions were recorded within the $10,000,000 and up condo market during the first quarter registering an average price of $15,895,224, and 4 transactions were recorded within the over $10,000,000 co-op market for an average price of $17,825,000. For luxury condos, the median days on the market was significantly higher at 237 compared to 89 market-wide, while median days on the market for luxury co-ops was only 49.5, lower than the market-wide median of 58.
“While there were a significant number of closings above $10,000,000, it is crucial to note these were mostly for apartments that went into contract years ago in buildings like 56 Leonard and 432 Park. New contracts for apartments priced above $10,000,000 are only for those that offer the best locations, most square footage for the price, and other amenities and features such as views and outdoor space. It is a buyer’s market on the top end,” added Heiberger.
Examining the market by individual neighborhood and property size, The Aggregate revealed a mixture of increasing and decreasing price trends during the first quarter, with the 2-bedroom segment registering as the most volatile across Manhattan.
The Aggregate is a comprehensive study of residential sale transactions across distinct asset classes from January to March 2017. The report compares those transaction values with quarter-over and year-over values, while providing invaluable insight into current trends and market conditions. Data is drawn from the rolling sales data of the Manhattan market along with the live ACRIS feed provided by the New York City Department of Finance.