The Q3 Manhattan Real Estate Report
The third quarter Manhattan market report just came out. Already there is lot of noise in the media about how badly the luxury market is performing. These dramatic numbers are somewhat artificial and here’s why!
The 2nd quarter saw a huge increase in the number of sales. This was due to buyers rushing to close in order to avoid the rise in the mansion tax. Therefore, the second quarter stole many sales from the 3rd quarter. What else is driving the market? Raised transfer taxes, the $10,000 cap on deductions, recession jitters and talk of a re-introducing the pied-a-terre tax. These are the ingredients for buyers to hit the pause button.
Buyers Are Playing Wait and See
Some buyers are waiting to see if prices drop further. They fear missing out on a possible bargain. Look, luxury prices have reset. It is better to buy now when you have a choice of the best properties out there. On a high note, the number of signed contracts has really picked up. Signed contracts are the real time indicator on the state of the market not closed sales.
Data Insights from the Manhattan Luxury Real Estate Market
|Prices $1M – $2M||186 Sold||180 Sold|
|Condos & Co-ops||Average Price $1.54M/$1,296 Avg PSF||Avg Price $1.53M / $1,430 Average PSF|
|Average Size 1,151 sq. ft.||Average Size 1,100 sq. ft.|
|avg. days on market – 51 Avg discount 4.2%||Avg days on market 86 -Avg discount 4.1%|
Mid Range Luxury
|Prices $2M – $5M||97 Sold||102 Sold|
|Condos & Co-ops||Avg price $2.94M / $1,551 Avg PSF||Avg price $2.70M/ $1,975 PSF|
|Avg Size 1,752||Avg size 1,421|
|Avg days on market- 56 – avg discount 5.2%||Avg days on market 88 – Avg discount 6%|
|$5M – $10M||30 Sold||39 Sold|
|Condos & Co-ops||Avg price $7.77M /$2,794 Avg PSF||Avg price $6.35M / $2,353 Avg PSF|
|Avg Size 2,415 Sq. Ft.||Avg size 2,942 sq. ft.|
|Avg. Days On Market -80 – avg discount 8.8%||Avg days on market 159 – Avg discount 8%|
|$10M & Over||8 Sold||10 Sold|
|Condos & Co-ops||Avg price – $24.8M /$4,629 avg psf||Avg price $17M / Avg psf $2,950|
|Avg size 5,395 Sq. Ft.||Avg size 7,357 sq. ft.|
|Avg Days On Market – unknow / discount unknown( new development||Avg days on market 125 –
avg discount- unknown
|Single Family Townhouses||11 Sold||9 Sold|
|Avg price $7.41M||Avg price $15.29M|
|Avg size 5,742||Avg size 8,602 sq. ft|
|Avg days on market 140||Avg days on market 129|
As always, if you have any questions about buying or selling real estate, contact me any time!