Ramirez: “First quarter data was better than expected, especially considering the levels of uncertainty during Q4.”
NEW YORK CITY—The average apartment price in Manhattan reached a record in the first quarter, according to Halstead’s first quarter 2017 market report. At about $2.2 million, the average price, driven by luxury new development closings and an uptick in high-end resale condo sales, increased 4% since last year.
A record also was set for the median price, which at about $1.2 million was slightly above the previous record set during the first quarter of 2016. The Halstead market report is based on 2,301 reported Manhattan apartment sales, 1% fewer than last year’s comparable period.
“The data for the first quarter was better than expected, especially considering the levels of uncertainty during the fourth quarter when many of these deals were negotiated,” says Diane M. Ramirez, chairman and CEO of Halstead. “Resale closing prices were 5% higher than a year ago, as high-end co-op sellers continued to adjust their asking prices to the market conditions. The middle- to lower-end of the market, however, remains strong due to low inventory,”
Halstead’s first quarter 2017 market report also noted that resale apartment prices averaged roughly $1.6 million, 5% higher than a year ago and the highest level since the second quarter of 2015; the median resale price of $955,000 bested the prior record of $950,000 set in 2016; while the total number of sales was down slightly from a year ago, the number of resale closings rose 5%;
Three-bedroom and larger cooperative apartments saw their average price decline 11% over the past year to about 3.3 million. This was the only size category to post a decline in average price compared to a year ago, and this helped bring the overall average co-op price down 4%; the strength of the luxury condo market helped bring the overall average condo price to about a record $3.2 million in the first quarter.
Three-bedroom and larger condos saw the average price jump 13% over the past year to nearly $7.8 million, pushed by a 15% gain in three-bedroom and larger apartments, the overall condo resale price reached a record of $2,116,341 in the first quarter.
Studio condo prices rose 6% from the first quarter of 2016; new development closing prices averaged about $4.4 million, a 15% improvement from 2016’s first quarter but down slightly from the record set in the previous quarter;
Just under 45% of all new development closings in the first quarter were south of 14th Street, by far the most of any market; the average resale co-op price fell 6% over the past year to just over $1.2 million;
Three-bedroom and larger apartments were the weak spot in this market, as their average price fell 10% from a year ago, while all other sizes of co-ops posted small gains in their average price during this time;
The highest percentage of resales in Manhattan were in Midtown at 20.6%, followed by the East side at 20.3%; resale apartments spent an average of 95 days on the market, 14% longer than a year ago, and the most amount of time since the second quarter of 2013; and sellers received 97.8% of their last asking price, down from 98.3% in the first quarter of 2016.