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Manhattan Residential Real Estate Market in Good Health

Steven James, Douglas Elliman Steven James, CEO of New York City, Douglas Elliman

NEW YORK CITY–With the average sale price for all co-ops and condominiums in Manhattan at $2,002,835 and median sale price at $1,170,000, residential real estate still shines as a strong investment in the third quarter of 2017. Residential property was on the market for an average of 101 days, with 3,369 sales closings. The median sales prices for apartments according to size were studios: $475,000; 1-bedrooms: $849,000; 2-bedrooms: $1,730,000; 3-bedrooms: $3,258,000; 4+-bedrooms: $7,056,036.

Douglas Elliman, the New York Metropolitan area’s largest brokerage, and the fourth largest real estate company in the country today released its Third Quarter 2017 Manhattan Sales Market Report. The numbers show an active market with the number of sales significantly increasing, up 6.9 percent when compared to the previous quarter, and up 13 percent when compared to the third quarter of last year.

Steven James, CEO of New York City, Douglas Elliman, says re-inventory sales simply cannot keep up with the demand. “Inventory has now fallen for two consecutive quarters after rising for 12 quarters. While this elevated activity is not spurring runaway price growth, prices in re-sales are definitely trading up.”

Jonathan J. Miller, president and CEO of Miller Samuel Real Estate Appraisers & Consultants, prepared the report. Looking at the sales of all Manhattan co-ops and condominiums based on size, 1-bedrooms had the highest market share of 40.8 percent, followed by 2-bedrooms with 29.9 percent, 3-bedrooms with 12.9 percent, studios with 11.6 percent, then 4-bedrooms with 5 percent.

The report also provides sale data separating condominiums from co-ops. Co-ops had an average sale price of $1,427,544 and median sales price of $850,000, and an average price of $1,335 per square foot. Co-ops were on the market for an average of 69 days. Miller notes the median sales price for co-ops set a 28-year high.

Jonathan J. Miller, president/CEO Miller Samuel

However, the average sales price across all markets fell 8.5 percent from last quarter and dipped 1.3 percent from the same time period last year. “This is likely due to the decline in legacy contracts, which I identify as sales that were signed a few years ago, but due to construction, are just closing now as buildings are completed. This pipeline was skewed much higher in price, and as it is starting to dissipate, we see the market coming back to a more stable level,” says Miller.

Condominiums showed a median sales price increase of 6.3 percent to $1,700,000, up from $1,600,000 from a year ago but a drop from $1,875,000 from the second quarter. Condominiums had an average sales price of $2,725,706 and average price of $2020 per square foot. They were on the market an average of 136 days.

The Third Quarter 2017 report now includes Northern Manhattan, defined as the area north of West 116th Street, Central Park, and East 96th Street. Miller Samuel Inc. also prepared a separate third quarter sales report for this area, breaking down the co-op and condominium sales prices for Harlem, East Harlem, Washington Heights, Fort George and Inwood.

In Northern Manhattan, the average condominium and co-op sales price was $755,753 down 2.9 percent from the second quarter average price sale of $778,657 but up 13.9% from the third quarter 2016 average price of $663,721. The median sale price was $599,000 and the average price per square foot was $870. Homes in this area were on the market for an average of 88 days.

The report noted “buyers seeking affordability flock to market as apartment sales continue to overpower inventory,” with the decline in apartment inventory.

By comparison nationwide, Realtor.com lists the median home price from Aug. 2017 at $275,000 with a listing time of 66 days on the market. Similarly, Zillow.com lists as of Aug. 31, 2017, the median US home value at $201,900 and $139 per square foot. Zillow reports the median price of homes for sale is $254,900, and median rental price at $1,600. The National Association of Realtors plans to releases its third quarter Metro Home Prices statistical report on November 2.

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