While the year-over-year gains have been momentous, especially notable is the luxury market where the average price per square foot is exceeding $2,500.
New York, New York (PRWEB) January 06, 2015
TOWN Residential, New York’s leading luxury real estate services firm, has released The Aggregate™ - the firm’s quarterly residential market report.
Among the most compelling trends, the report revealed a considerable 18.55% year-over-year increase in the average market-wide sales price from $1,472,808 to $1,745,942 which was fueled by the strength of the condominium market and the up-tick of activity within the luxury segment. Market-wide, sustained inventory shortage was evidenced by a quarter-over-quarter curtailment to 78 median days on market and a nearly 12% decrease in the absorption rate to 3.8 months of supply.
Market-wide, condominium sales represented fewer transactions than cooperatives, accounting for approximately 44% of closed deals. The average price of a Manhattan condo increased 7.19% as compared to third quarter 2014, from $2,292,837 to $2,457,797; while experiencing a dramatic 25.46% boost year-over-year. When compared to the same period in 2013, limited inventory coupled with continued low interest rates and pent-up demand resulted in an 11.76% reduction to 75 median days on market.
The luxury market – defined as the top 10% of residential sales with the exclusion of townhouses – reported a significant 31.26% year-over-year surge in average sales price from $5,798,051 to $7,610,347. The same segment, with an approximate $3,270,000 entry point, also experienced a notable 24.6% decline to 95 median days on market compared to 126 days in fourth quarter 2013.
The cooperative market, which experienced a quarter-over-quarter decrease of nearly 9% in average sales price, demonstrated modest year-over-year growth of 4.13% to a recorded average sales price of $1,178,123. As seen in all segments, there was a decrease in median days to 80 compared to 92 at fourth quarter 2013.
“As predicted, 2014 was a record-breaking year for Manhattan real estate with the overall climb in prices underscoring the continued strength of the market across all segments,” said Andrew Heiberger, CEO and Co-Chairman of TOWN Residential. “While the year-over-year gains have been momentous, especially notable is the luxury market where the average price per square foot is exceeding $2,500 – nearly 10% more than this time last year. While inventory levels will increase in this segment as the pipeline of new product comes to market, it will be the distinctive properties that garner the most attention. As a testament to continued enthusiasm and demand in our market, we have seen a 25% uptick in building permits across the five boroughs. This number is significant as it further reinforces New York City as a sought-after global destination for real estate development, investment and enjoyment.”
Examining the individual neighborhoods, The Aggregate™ showed mixed but generally positive pricing trends during the fourth quarter. The Upper East Side led the three-plus bedroom market with a median price of $3,440,000. Downtown commanded the highest median prices for one-bedrooms and Midtown reported the highest two-bedrooms with $947,338 and $1,981,611 respectively.
Compiled by Damien Parker, TOWN Residential’s Chief Statistician, The Aggregate™ is a comprehensive study of 2,043 residential sale transactions across three distinct asset classes – condominiums, cooperatives and townhouses – from October through December 2014. The report compares those transaction values with quarter-over and year-over values, while providing invaluable insight into current trends and market conditions. Data is drawn from the rolling sales data of the Manhattan market along with the live ACRIS feed provided by the New York City Department of Finance.
The complete report can be viewed on townrealestate.com.
About TOWN Residential: TOWN is a top-ranked, fully integrated Manhattan real estate services firm created through the partnership of Founder and Owner Andrew Heiberger and Founder and CEO Joseph Sitt, specializing in luxury residential sales and leasing and the marketing, sales and leasing of new developments. An integral part of the New York real estate landscape, TOWN has a team that exceeds 640 licensed professionals and staff in the newly opened corporate headquarters at 25 West 39th Street and ten neighborhood offices: TOWN Greenwich Village, at 530 LaGuardia Place; TOWN SoHo, an 1886 landmarked corner storefront at 337 West Broadway; TOWN 79th Street, a corner storefront at 239 East 79th Street on the Upper East Side; TOWN West Village, a trophy office at 446 West 14thStreet; TOWN Astor Place, a block-storefront space overlooking historic Astor Place in the Gwathmey Siegel-designed Sculpture for Living at 26 Astor Place; TOWN Fifth Avenue, located in the prestigious Crown Building at 730 Fifth Avenue at 57thStreet; TOWN Flatiron, located at 110 Fifth Avenue and 16th Street; TOWN Greenwich Street, nestled in the heart of the Financial District at 88 Greenwich Street; and TOWN Gramercy Park at historic 33 Irving Place. For more information about these offices and TOWN Residential, visit http://www.townresidential.com.