Third quarter market reports are in and median sales prices are up 11% compared to the same time last year. In addition, the number of days it takes to sell an apartment has dropped from 58 to 54 days and the discount from list price to sale price has also dropped from 6.4% to 5%. These statistics represent the continued market strength for the higher volume, non-luxury price segment of the market. Heading into a typically active season, we expect general price trends to continue, with market dynamics favoring accurately priced units.
Full market report here
Some other factors to consider:
- GROWTH CONTINUES For the second consecutive quarter Manhattan residential sales saw annual growth in the number of closed sales. This is a result of improved contract activity during the first six months of 2017 vs 2016. In Q3 2017, we saw closings rise by 3% year-over-year to 3,703. This can be attributed to healthy performances in the new development and resale co-op markets.
- MANHATTAN’S PRICIEST NEIGHBORHOOD The Flatiron District became the priciest neighborhood in NYC during Q3, with a 220% increase in median sales price from this time last year to $4,399,375. The massive growth is largely attributed to 39 condos that sold at 41-43 E 22nd St, ranging from $2.6M-$9.4M. TriBeCa took a 9% drop and ended up in 2nd place, while Central Park South made a 103% increase to take third.
- FORECLOSURES SURGE The number of foreclosures in Manhattan rose 79% year-over-year in Q3 2017 – 859 homes were scheduled, compared to 481 in Q3 2016. After a peak in foreclosure activity in Q2 2017, Q3 2017 brought a slowdown in the number of cases. By property type, single and two-family homes have seen the highest increases in Q3 2017. The Bronx saw foreclosures soar by 145%.
- RECORD BREAKING YEAR FOR CO-OPS The median sales price of co-ops reached a 28 year high in Q3. While the significantly higher median sale price of a condominium in Manhattan increased 6.3% to $1.7m, the co-op market saw a moderately larger jump of 8.3%, to $850,000.
- CONCESSIONS CAN’T STOP SLIPPING RENTAL MARKET Prevalent rental concessions aren’t working as effectively as they have in past years. Last month the Manhattan vacancy rate hit 2.6 percent, the highest level it’s been all year. The median net effective rent slipped slightly to $3,334, while the share of new leases with concessions hit 27%, up from 15% last year. It’s a good time to be a renter.