Manhattan 3rd Quarter Market Report

Supply shortages combined with increasing demand pushed Manhattan apartment prices higher over the past year.  Our preliminary data shows prices averaged $1,451,621 in the third quarter, 8% more than a year ago.  The median price reached its highest level in over four years, rising 3% to $870,000.  A 75% increase in the number of closings over $10 million played a large role in these increases.

Buyers, concerned about low inventory and rising mortgage rates, moved quickly during the quarter.  Average time on the market was just 77 days, 29% less time than a year ago.  Buyers paid 98.6% of the seller’s last asking price in the third quarter, up from 96.3% in 2012’s third quarter.  Buyer urgency was also evident in the fact that 16% more closings were reported than the same time last year, despite inventory levels that were 25% lower.

Co-op prices averaged $1,175,163, 11% more than in 2012’s third quarter.  Studio co-ops posted a 17% increase in their average price, while three-bedroom and larger co-ops had a 15% gain.  The average condo price reached $1,864,711 in the third quarter, an increase of 9% from a year ago.  Three-bedroom and larger condo showed the biggest price increases, as their average price jumped 26% to $4,820,112,

The NYC economy remains strong, with 84,400 jobs added in the 12 months ending August.  This growth has offset the sharp rise in 30-year mortgage rates, which are about 1% higher than a year ago.  New development activity has remained strong thanks to the continuing presence of foreign buyers who see the value in Manhattan real estate.

Please keep in mind that third quarter 2013 data is preliminary and subject to revision in future reports.  Data from the prior four quarters has been revised to include sales recorded after our initial reports were released.

by Ellen Devens, Brown Harris Stevens
devensel@bhusa.com

Posted in: Brown Harris Stevens, Ellen Devens, Manhattan Real Estate, New York City Real Estate