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

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Report reveals a continued rise in price action – with average prices nearing $2 million – as the Fall ‘soft patch’ is yet to filter through the lagging sales pipeline

Manhattan Market-Wide Overview

Year-over-year, Manhattan average sales prices posted a 5.2% gain, rising to $1,976,660; while median sales price growth came in 16% higher than the year ago period to $1,150,000.

TOWN Residential, New York’s leading luxury real estate services firm, has released The Aggregate - the firm’s quarterly residential market report. The fourth quarter 2015 report reveals a continued rise in price action as the Fall ‘soft patch’ is yet to filter through the lagging sales pipeline. Year-over-year, Manhattan average sales prices posted a 5.2% gain, rising to $1,976,660; while median sales price growth came in 16% higher than the year ago period to $1,150,000.

At the conclusion of 2015, price per square foot trends continue to reach record levels evidenced by median trends which came in 6.2% higher than a year ago at $1,365. Average price per square foot trends confirmed this year-over-year growth, and also showed an 8.4% rise from the prior quarter to a new level of $1,505.

With nearly a 20% increase, the median sales price of Manhattan condos posted the most significant year-over-year gains, coming in at $1,736,250 for the fourth quarter of 2015. Median price per square foot trends also showed a solid move higher to $1,606; up 11% from the year ago period and 7.6% higher from the third quarter of 2015.

The average price of a Manhattan co-op in the fourth quarter was $1,272,902, compared to $1,217,017 in the third quarter of 2015; an increase of 4.6%. On a year-over-year basis, the average price of a co-op rose 6.4%. Average price per square foot trends came in at $1,087; a 6.3% increase from the year ago period and slightly higher than last quarter’s reading of $1,066.

Examining the properties by size category, the report revealed increasing price trends in virtually all segments during the fourth quarter. Market-wide, the median price of a one-, two- and three-plus bedroom condo was $1,080,000, $2,056,865 and $4,421,300 respectively. Also, of particular note, the median price of a three-plus bedroom cooperative increased 15% over the last quarter, surpassing the $3,000,000 mark.

“Manhattan has experienced a widening gap between new development sales and trends within the resale marketplace. While the most recent reports show a continued boost in Manhattan prices, this is largely credited to the quarter’s closing of trophy listings within new developments,” said Andrew Heiberger, founder and CEO of TOWN Residential. “Looking at the existing resale market, we are seeing a stabilization as sellers have begun adjusting their price expectations from the peak levels hit earlier this year. It is this adaptability that has turned the late-summer to early-fall soft patch into a blip rather than a systemic downshift.”

“We are still seeing some transactions at record prices which contribute to year-over-year gains in the market-wide average price per square foot,” said Wendy Maitland, President of Sales of TOWN Residential. “As of December 30th, there were 7,963 units, including condos, coops and townhouses, on the market in New York City. Within Manhattan alone, there are 4,326 units – with 2,100 units under $2 million; 1,132 units priced at $2-5 million; 601 units $5-10 million; and 493 luxury units priced over $10 million. This inventory suggests a healthy and more balanced 2016 market that will present real opportunities for buyers.”

“The power continues to shift to the buyer and their cost-conscious approach contributed to the quarter’s sharp increase in median days on market,” said Itzy Garay, Executive Vice President of Sales and Leasing, TOWN Residential. “Armed with information, buyers are ready and able - but no longer willing at any price.”

The Aggregate is a comprehensive study of residential sale transactions across distinct asset classes from October through December 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 -
Founded in 2010, TOWN Residential was created by founder and CEO Andrew Heiberger and is co-chaired by Joseph Sitt. In just five short years, TOWN Residential has cemented its position as New York’s foremost luxury real estate services firm with an exhilarating foundation and seamless execution of best-in-class customer service by an unparalleled team of more than 630 Representatives and professionals strategically located throughout the city. TOWN Residential specializes in luxury residential sales; leasing; the marketing, sales and leasing of property developments; commercial and retail.

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Lori Levin
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