The Manhattan real estate market entered 2018 on a quiet note as buyers continued to adapt to policy changes affecting home ownership and more volatile equity markets. Broader price trends remained stable as the median sale price of an apartment increased a muted 1.32% from the prior quarter to $1,150,000, while decreasing a scant 0.86% on a year-over-year basis. The average price saw a more pronounced gain from last quarter, rising 7.22%, but falling 2.93% from the same period last year. In addition, compared to the year-ago period, days on market remained nearly unchanged at 70 days, while the median listing discount from original asking price held steady at 6.25%. Both of these metrics suggest that sellers continue to face a challenging pricing environment. While weakness has been mainly isolated to the higher price points, it is worth noting that the slow start to the active season could set the stage for pricing pressures to continue in the coming quarters.
CONDO
The Manhattan condo market saw median prices fall 2.69% over the year to $1,635,000, down from $1,680,112 last year. The median price per square foot for condos dipped 0.49% to $1,573 from last year, and it took an average of 92 days to sell, versus 89 last year. As condos enjoy a larger, more speculative buyer pool, the sector will ultimately be more exposed in down cycles and this will be most evident in average sales figures and in higher price points.
COOP
The first quarter saw another improvement for the more stable coop market. Coop median prices increased 9.27% from a year ago while the time it takes a property to enter contract fell by 2 days to 58. As we enter the spring quarter, we expect coop prices to stay on trend, but remain wary of external market forces which may eventually impact this segment.
Download the 1st Quarter 2018 Report here.