With the 4th quarter Manhattan housing reports coming out we are breaking down highlights of what you need to know, giving you insights on your neighborhood.
As 2018 comes to a close reports show that Manhattan has had the slowest Q4 since the 2012 “Fiscal Cliff” with homes sitting on the market with 7,019 (up 10% from last year) currently listed according to Stribling’s Market reports.
“Every quarter of 2018 saw a decrease in the number of sales over the same period one year ago, including the most recent quarter,” said Garrett Derderian, Director of Data & Reporting at Stribling. “The striking occurrence now is the number of sales hit a post-crash low. The last time we observed so few fourth quarter sales was 2011.” Total sales, at 1,906, was down 10% from this time last year, and down 25% from a record Q4 in 2015.
Reports have shown that buyers are still waiting before making the purchase with concerns over tax implications, rising interest rates, volatility in the financial markets, and the belief that prices will continue to decrease. While the market has remained slow, luxury homes still continue to rise in price with record setting sales.
Highlights from Corcorans Q4 Manhattan Market Report show.
Market-wide closed sales declined 7% and contracts signed decreased 12% compared to last year: Declining sales were fueled by fewer condominium sales in both the resale and new development markets, which decreased by 11% and 26%, respectively. Resale co-op sales were level with last year at this time, increasing slightly by 1%.
·Generally, prices cooled in the Fourth Quarter, but were bolstered by a spate of super high-end sales: In order to compete in a crowded market that lacks urgency, sellers have had to adjust by reducing prices and negotiating. This, combined with an uptick in resale co-op sales, pushed median price by 2% year-over-year to $1.075 million. Average price, however, rose 2% to $2.012 million due exclusively to a number of super-luxury closings at 220 Central Park South and 520 Park Avenue.
Inventory increased 10% market-wide this quarter to 6,993 units: Fourth quarter inventory was last this high in 2011. By product type, co-op inventory rose most, up 17% year-over-year, and resale condos increased by 6%. New development inventory declined slightly, by 2%.
The new development market displayed mixed price trends this quarter. Median price fell with fewer high-priced tower closings, yet median price per square foot rose as the share of lower-priced conversion sales contracted. Average price figures increased as sales at view-oriented properties like 520 Park, 220 Central Park South, and 70 Vestry grew in number