January is typically a slow month in the Manhattan luxury market. However this January proved to be the weakest January since 2012. Last week the $4 million and over luxury Manhattan market saw just 15 signed contracts matching the number for same week in the very weak market of 2009. Condos outsold co-ops 10 to 3. Downtown led the market with 8 contracts. The average discount from the original listing price was 10%. The average number of days on the market was 574.
In the overall resale market there are 4,304 listings on the market as of yesterday representing a 11.9%. increase from the prior month and up 27.9% from the prior year. The number of signed contracts as of yesterday was 1,757 up 2.2% from the prior month and up 15.2% from the prior year. The market pulse (pending to active ratio) is 0.41 down 8.9% from the prior month and the same for the prior year. This demonstrates a market that continues to favor buyers. The median days on the market was 87 flat from the prior month and up 29.9% from the prior year.
Behind the Numbers
The Manhattan real estate market has been slowly correcting since 2016. In 2018 the market transitioned into a buyers’ market. Buyers were quicker to recognize a changing market. It takes sellers a few years to adjust. Many more sellers are dropping their prices to this match the new market. Sales are taking place just at a slower pace. Since the inventory has increased substantially , buyers have more choices and are taking their time. Buyers ignore overpriced properties and are hesitant to buy properties that need a lot of renovation unless priced very well. In addition buyers feel a level of uncertainty due to political issues such as the government shutdown. The new tax law is having an impact as well. Sellers must price their homes to the new market value in order to have a successful sale and hire an expert broker whose expertise is marketing homes.
Top Manhattan Real Estate Sales and Stats
- Weekly Sales Volume Total was $131,870, 000 versus $97,264,000 the prior week
- Average asking price was $8,791,333 versus $8,105,333 the prior week.
- Median asking price was $5,900,000 versus $6,497,500 the prior week.
- The average number of days on the market was 574 versus 747 the prior week. 180 days is the normal range. Luxury real estate has been taking longer to sell.
- The average percentage of discount from original asking was 10% versus 14% the prior week.
- The Number 1 contract was a townhouse at 3 East 89 th Street asking $27 million reduced from $29.5 million when listed last March.
- The Number 2 contract was a townhouse at 49 East 68th Street asking $23 Million . It was purchased in 2017 for $20.4M. It was gutted and delivered as a raw box with a set of approved plans.