TOWN Residential Analysis of the Manhattan Real Estate Market Sheds Light on Third Quarter Market Conditions and Trends

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Report reveals that shortage of inventory, especially in the lower price points, continued to drive days on market down from 48 days in the second quarter to 41 days in the third quarter – a nearly 15% decrease.

Manhattan Market Wide Metrics

The single most important fact to understand in all sectors of the Manhattan marketplace is that there is always demand provided that the property is priced competitively.

TOWN Residential, New York’s leading luxury real estate services firm, has released The Aggregate - the firm’s quarterly residential market report. The third quarter 2015 report reveals a market-wide 1.5% climb in average sales prices year over year, from $1,766,221 to $1,792,067, despite a 4.5% quarter-over-quarter decrease due to seasonality.

Market-wide, the average price of a Manhattan condo decreased 3.3% compared to the second quarter of 2015, from $2,420,826 to $2,340,454; while still increasing 7.4% year-over-year. The average price per square foot of a Manhattan condominium remained virtually unchanged at $1,586, just a 0.3% decrease from the previous quarter.

Average sales prices for Manhattan coops reported the biggest quarter to quarter change as high end price segments showed signs of fatigue. Average coop prices dipped 9.6% compared to the prior quarter while the year-over-year decrease was a milder 3%, from $1,245,918 to $1,207,761. Compared to the year ago period, price per square foot continued to increase with a nearly 12% rise to $1,063 from $952. Days on market decreased a considerable 18% year-over-year, falling from 44 days to 36 days.

Examining the properties by size category, the report revealed a mixture of increasing and decreasing price trends during the third quarter. Market-wide, the median price of a one-, two- and three-plus bedroom apartment was $799,000, $1,797,500 and $3,397,500 respectively. Of particular note, the median price of a three-plus bedroom condominium increased 4%, surpassing the $4,000,000 mark.

“The single most important fact to understand in all sectors of the Manhattan marketplace is that there is always demand provided that the property is priced competitively. The number of transactions - for both sales and rentals - is at or near historic highs. Make no mistake, New York City continues to be inventory constrained as exemplified by a nearly 15% decrease in days on market,” said Andrew Heiberger, founder and CEO of TOWN Residential. “While there has been a 5% market-wide correction in average sales price, this is normal, healthy, and to be expected for longer term sustainable growth. I believe that today's market remain very near the price ceilings reached earlier in 2015 as buyers see the beginnings of relief on both the supply and demand side.”

“The activity in the luxury market reached historic highs as 2014 came to a close. Price action outperformed every other price point and expectation during that period. 2015 is a market with natural dynamics at play as the highest price points are more vulnerable to recent global economic headwinds,” said Wendy Maitland, President of Sales of TOWN Residential. “The luxury segment is trading, however, the sellers need to be much more price conscious as global market volatility rises.”

“As we begin the fourth quarter, leverage continues to favor the seller, albeit at a lower level than only one quarter ago,” said Itzy Garay, Executive Vice President of Sales and Leasing, TOWN Residential. “In just the last month, we have seen supply trends begin to tip in favor of buyers, and the fierce competitive buyer’s environment that characterized the first two quarter of 2014 is beginning to subside.”

The Aggregate is a comprehensive study of residential sale transactions across three distinct asset classes – condominiums, cooperatives and townhouses – from July through September 2015. 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.

About TOWN Residential: TOWN Residential is New York’s leading luxury real estate services firm. Founded in 2010, TOWN Residential was created by CEO and co-chairman Andrew Heiberger and is co-chaired by Joseph Sitt. An integral part of the New York real estate landscape, TOWN has a team that exceeds 650 licensed professionals and staff in nine 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 14th Street; 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 57th Street; 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.

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Lori Levin