In Manhattan, the average sale price and number of closings both remained largely unchanged over the last month. The average price for an apartment, including both condos and coops, was $2.3 million, nearly the same as it was the prior month. The number of recorded sales month-over-month took a very slight dip, from 817 to 807.
Some factors to consider:
- ABSORPTION RATES Absorption rates show how many months it would take to sell all active listings in a given market. It’s calculated by dividing the number of listings by the average number of closings over the prior 6 months. An absorption rate that falls between 6-9 months typically indicates a balanced market. In May, the absorption rate for condos was 7.7 and 5.3 for coops. Studios had the lowest absorption rate, at 5.7 for condos and 2.6 for coops, indicating they sell faster than all other unit sizes.
- NEW DEVELOPMENT Inventory in Manhattan has risen at an average of 17% year-over-year for the past five quarters while the median asking price has declined over the same period. This is a result of price adjustments at the top-end ($5M+) of the market and a new supply of moderately priced units. From 2015 to mid 2016 we saw a dip in the average final list price of new developments that entered into contract. However, in 2017 we have so far seen a rebound, with an average final list price of just under $3M.
- THE LUXURY MARKET Thirty-one contracts were signed in the first week of June at $4 million and above, making it the fourth week in a row of 30+ deals signed in this price segment. 21 were condos, 7 were co-ops and 3 were townhouses. One notable sale was Justin Timberlake and Jessica Biel closing on PHG at 443 Greenwich Street for $20,185,527, down -26.6% from the asking price of $27.5 million which has become more common in this price range.