Douglas Elliman Real Estate, one of the the largest brokerages in the New York Metropolitan area and the 4th largest residential real estate company nationwide, have released their Q2 2017 market report. The report reflects strong sales and re-sales, rising prices and declining resale inventory for the first time in 3 years as many aspirationally priced listings expired and were cancelled. New development inventory continued to push higher.
"What is clear that the Manhattan real estate market remains surprisingly robust, especially on the re-sale side. Prices have moved higher, including two new records set and there has been a sharp rise in sales, as inventory has slipped," said Steven James, CEO of New York City, Douglas Elliman. "Northern Manhattan continues to show brisk conditions as buyers seek out affordability. Sales in Northern Manhattan sales are four times what they were in 4x more than they were 25 years ago. What is clear is that the market remains surprisingly robust, especially on the re-sale side."
MANHATTAN HIGHLIGHTS
- Price trend indicators moved higher, 2 set new records
- Sharp rise in sales as inventory slipped keeping market pace brisk
- New development inventory edged higher as re-sale inventory declined annually for first time in 3 years
- Overall market share of bidding wars slipped but remained above average
- Market share of cash sales fell to lowest level since began tracking more than 3 years ago
- Listing discount rose to tie the highest level in nearly 5 years as sellers increasingly coming down to meet buyers on price
- Luxury listing inventory fell sharply as aspirational priced listings were allowed to expire
KEY TREND METRICS (YOY)
- Median sales price jumped 7.3% to $1,189,011 [record]
- Price per square foot increased 0.8% to $1,773
- Average sales price rose 7.9% to $2,189,037 [record]
- Number of sales surged 15.2% to 3,153
- Listing inventory slipped 0.6% to 6,311
- Days on market rose 21.3% to 108 days
- Listing discount was 6.1%, up from 2.2%
- Absorption rate was 6.0 months, down from 7 months
CO-OP MARKET
- Median sales price increased 3.4% to $793,750
- Price per square foot rose 1.3% to $1,348
- Average sales price rose 4.8% to $1,363,916
- Number of sales jumped 22.2% to 1,674
- Listing inventory slipped 0.4% to 2,775
CONDO MARKET
- Median sales price increased 19% to $1,875,000 [record]\
- Price per square foot rose 1.3% to $2,100
- Average sales price rose 13.2% to $3,122,946 [record]
- Number of sales increased 8.3% to 1,479
- Listing inventory slipped 0.9% to 3,536
LUXURY MARKET (UPPER 10% CO-OP/ CONDO SALES)
- Median sales price was $6,836,269, up 3.5%
- Price per square foot rose 2.2% to $3,037
- Average sales price rose 7.6% to $9,280,290
- Listing inventory declined 11.2% to 1,235
- Luxury market threshold jumped 12.7% to $4,875,000
NEW DEVELOPMENT MARKET (CO-OP/ CONDO SALES)
- Median sales price increased 22.8% to $3,306,656
- Price per square foot slipped 0.8% to $2,556
- Average sales price was up 7.3% to $4,703,544
- Number of sales rose 10.1% to 556
- Listing inventory rose 3.1% to 1,021
- Market share was 17.6%, down from 18.5%
RE-SALE MARKET (CO-OP/ CONDO SALES)
- Median sales price increased 3.2% to $975,000
- Price per square foot was up 2.8% to $1,494
- Average sales price increased 10.3% to $1,650,698
- Number of sales rose 16.4% to 2,597
- Listing inventory slipped 1.3% to 5,290
- Market share was 82.4%, up from 81.5%
NORTHERN MANHATTAN HIGHLIGHTS
- Market wide apartment price trend indicators flirt with records as buyers hampered by limited
supply
- Apartment listing inventory has fallen sharply year over year for the past 2 quarters
- Number of apartment sales moved higher as remainder of Manhattan sought out greater
affordability here
- Market share of Manhattan apartment sales quadrupled from 2.1% in 2Q 1992 to 8.3% in 2Q 2017
- Townhouse sales continued to be held back by lack of supply
- Townhouse price trend indicators moved sharply higher
KEY TREND METRICS (YOY)
CO-OP & CONDOS
- Median sales price jumped 16.3% to $630,000
- Price per square foot increased 12.7% to $894
- Average sales price rose 18.7% to $778,657 [record]
- Number of sales increased 9.6% to 263
- Listing inventory fell 16.3% to 303
TOWNHOUSES
- Median sales price rose 9.3% to $2,187,500
- Price per square foot surged 36.3% to $943 [record]
- Average sales price rose 14.7% to $2,237,750
- Number of sales fell 25.7% to 26
- Listing inventory declined 40.9% to 55
ABOUT DOUGLAS ELLIMAN:
Douglas Elliman was established in 1911 and has grown to become the largest regional and the nation's fourth largest real estate company. Douglas Elliman has a current network of more than 6,000 agents in over 80 offices throughout Manhattan, Brooklyn, Queens, Long Island (including the Hamptons and North Fork), Westchester and Putnam Counties, as well as South Florida, California, Connecticut, Colorado and New Jersey. In addition, through a strategic partnership with Knight Frank Residential, Douglas Elliman's powerful network extends to 488 offices in 59 countries.
