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Douglas Elliman Releases Q3 2017 Manhattan Sales Market Report

Date: Oct 02, 2017

DouglasElliman Releases Q3 2017 Manhattan Sales Market Report

Elevatedmarket activity and modest price growth as re-sale inventory continues to fall;Co-Op Market Hits Record High

New York, NY (October2, 2017) Douglas Elliman Real Estate,the largest brokerage in the New York Metropolitan area and the fourth largestresidential real estate company nationwide, today releases the Q3 2017 Manhattan Market Report for sales in the borough.  The report, which now includes NorthernManhattan (defined as the area north of West 116th Street, CentralPark, and East 96th Street), shows an active market with sales upsignificantly, modest price growth and inventory on the decline.

“The market is in goodcondition with sales up sharply year-over-year,” said Steven James, CEO of New York City, Douglas Elliman. “Thisactivity is actually overpowering the re-sale inventory, which simply can’tkeep up.  Inventory has now fallen fortwo consecutive quarters after rising for twelve quarters. While this elevatedactivity is not spurring runaway price growth, prices in re-sales aredefinitely trending up.”

“Co-ops are setting a 28-yearrecord high,” added Jonathan Miller of Miller Samuel Inc., the author of thereport. “Average sales prices, however,declined, although this is likely due to the decline in legacy contracts, whichI identify as sales that were signed a few years ago, but due to construction,are just closing now as buildings are completed. This pipeline was skewed muchhigher in price, and as it is starting to dissipate, we see the market comingback to a more stable level.”

The Northern Manhattanmarket, representing 8.6 percent of Manhattan sales, continues to feel thepressure from the remainder of Manhattan as buyers seek out greateraffordability.  Heavy sales activity continued to overpower inventory.

MANHATTANSALES MARKET HIGHLIGHTS


Overview

- Median sales priceincreased, but fell short of prior quarter record

- Most overall sales in twoyears as overall inventory slipped

- Average sales price fellacross most markets as legacy appear to decline

- Co-op median sales priceset 28 year record high

- Luxury inventory declinedas over priced listings continued to drop out

- Resale inventory fell forsecond consecutive quarter as new development supply continued to expand

- Market share of biddingwars remain less frequent in larger apartments

Key TrendMetrics (compared to same year ago period)

- Median sales price rose9.3% to $1,170,000

- Price per square footdeclined 11.5% to $1,678

- Average sales priceslipped 1.3% to $2,002,835

- Number of sales jumped 13%to 3,369


- Listing inventory slipped 2.4% to 6,115
- Days on market rose 27.8% to 101 days
- Listing discount was 5.5%, up from 2.9%

- Absorption rate was 5.4months, down from 6.3 months


Co-op Market
- Median sales price increased 8.3%to $850,000 [record]

- Price per square foot rose8.5% to $1,335

- Average sales price rose10.8% to $1,427,544

- Number of sales increased13.5% to 1,876

- Listing inventory slipped4.2% to 2,670

Condo Market
- Median sales price increased 6.3% to $1,700,000

- Price per square footdeclined 6.7% to $2,020

- Average sales pricedecreased 7.6% to $2,725,706
- Number of sales increased 12.3% to 1,493

- Listing inventory slipped0.9% to 3,445

Luxury Market (upper 10%of all co-op and condo sales)
- Median sales price was $6,423,107,down 4.8%

- Price per square footdeclined 6.1% to $2,868

- Average sales pricedecreased 8.3% to $8,091,277

- Listing inventory declined14.4% to 1,152

-Luxury market threshold declined 3.2% to $4,241,011 

New Development Market(co-op and condo sales)

- Median sales pricedecreased 23% to $2,797,500

- Price per square foot fell18.3% to $2,482

- Average sales pricedeclined 26.8% to $4,256,992
- Number of closed sales surged 69.5% to 461

- Listing inventory rose6.9% to 1,040

- Market share was 13.7%, upfrom 9.1%

Re-sale Market (co-op andcondo sales)

- Median sales priceincreased 1.9% to $995,000 [record]

- Price per square footdeclined 6.9% to $1,481

- Average sales priceslipped 0.2% to $1,645,488
- Number of sales rose 7.3% to 2,908

- Listing inventory fell4.1% to 5,075

- Market share was 86.3%,down from 90.9%

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NORTHERNMANHATTAN SALES MARKET HIGHLIGHTS

Overview

- Buyersseeking affordability flock to market as apartment sales continue to overpowerinventory

- Apartmentprice trend indicators pressed higher than year ago levels 

- 3rdconsecutive year over year decline in apartment inventory

- Townhouseprice trend indicators moved higher with higher gains at the top

- Sharpdecline in supply cutting off sales activity

Key TrendMetrics (compared to same year ago period)

Co-ops &Condos

- Median salesprice rose 7.4% to $599,000

- Price persquare foot increased 11.4% to $870

- Average salesprice rose 13.9% to $755,753

- Number ofsales increased 15.6% to 289

- Listing inventory fell 24.6% to 269

Townhouses

- Median salesprice rose 4.8% to $2,150,000

- Price persquare foot jumped 19.3% to $748

- Average salesprice rose 16% to $2,285,564

- Number ofsales fell 12.9% to 27

- Listing inventorydeclined 46.3% to 43

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About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide. With more than 7,000 agents, the company operates approximately 110 offices in Manhattan, Brooklyn, Queens, New Jersey, Long Island, the Hamptons & North Fork, Westchester, Greenwich, South Florida, Colorado and California. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing; Manhattans largest residential property manager, Douglas Elliman Property Management with over 250 buildings; and DE Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.

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