MANHATTAN MARKET REPORT UPDATE FROM OUR CHIEF ECONOMIST
For the 2nd Quarter 2014
By Greg Heym, Chief Economist at Halstead Property
Manhattan apartment prices averaged $1.7 million in the second quarter, virtually unchanged from the first quarter’s record level, and 19% higher than a year ago. A booming new development market, which posted a record average price of just under $3.5 million, combined with a record co-op sale and scarce inventory kept prices elevated. The number of reported sales was 9% higher than a year ago.
The median price, which measures the middle of the market, fell 1% from the first quarter of 2014, but was 5% above 2013’s second quarter. This shows us that most of the increase in the average price is due to the high end, as the middle of the market is rising at a much slower pace.
Perhaps the most telling statistic on the strength of the luxury market is that at the time of our report, 45 closings over $10 million had been recorded. During the same time period in 2013, there were just 16, a 181% increase.
All sizes of co-ops saw their average price rise compared to 2013’s second quarter, led by a 26% gain in three-bedroom and larger units. Overall, the average co-op price of $1,240,747 was a 12% improvement from the second quarter of 2013. The average condo price of $2,283,151 was slightly below last quarter’s record level, but 26% higher than a year ago. New developments, such as One57-which had 4 closings over $30 million-pushed the average price 47% over the past year for three-bedroom and larger condos.
The full version of the report click here.