Manhattan Market Report for 2nd Quarter, 2010

Manhattan 2Q 2010 Market Report

The 2009 Manhattan real estate market is beginning, if slightly, to recede into the past. This year’s market is stronger than anyone could have hoped for last summer, which means we can all spend a little more time worrying about how to beat the heat than if sales are going to pick up. In fact, they are up 15% from last quarter and 80% from last year- something to smile about. While the first time home buyers’ tax credit is over, its effect was strong and the purchasing pick-up is making its way into higher end properties. The rest of the year looks to be driven by the dramatically low mortgage rates and lower, stabilizing prices.

2Q Market Report Overall

• There were 2,756 sales in the second quarter, up a dramatic 79.9% from 1,532 sales last year and up 15.6% from 2,384 sales in 1Q. This is the highest number of sales since 2Q 2008, and above the 2,411 quarterly average over the past decade.
• The median sales price for a Manhattan apartment was $899,000, up 7.6% from $835,000 last year and up 3.6% from $868,000 in 1Q.
• Average sales price rose 9.1% to $1,432,712, up from $1312,920 last year, and up 0.4% from $1,426,994 in 1Q.
• Price per square foot remained stable, down just 0.5% to $1,051 per square foot from $1,056 last year, and up from $1,038 in 1Q.
• Available listing inventory (excluding shadow inventory) was 8,157, 13% below the prior year but up 1.6% from the prior quarter.
• “Shadow inventory” is estimated at 6,500 units.
• Average Days on Market was 105 days, down from 162 last year and down from 124 in 1Q.
• The Listing Discount was 9.1%, up from 7.8% in the prior year quarter and up from 5.4% in 1Q.

Manhattan Co-Op Market

The Co-op market saw a sharp rise in sales, comprising 43.7% of all apartment sales this quarter, though still under the 5 year average of 47.9%. Studio and 1 bedroom apartments were down from 61% to 56% of total sales, indicating a rising demand for the upper-end of the co-op market. There was also an encouraging overall stabilization of price indicators.

• There were 1,203 sales in 2Q, up 65.2% from last year and 8.3% from 1,111 in the last quarter.

• Listing Inventory was 3,948 at the end of the quarter, 10.3% below last year at this time, but up 3.6% from last quarter. The monthly absorption rate is 9.8 months, almost one month faster than the past decade’s average of 10.5 months.

• The median sales price was $697,501, 7.5% higher than last year’s 2Q $649,000 and 1.8% higher than last quarter.
• Average sales price was $1,113,173, 4.2% higher than last year’s 2Q but 1.8% below last quarter.
• Price per square foot was $943, 2.8% higher than last year’s 2Q mark and 3.9% higher than last quarter. By region, the East Side was at $1,001 per square foot, Uptown at $653 per square foot, Downtown at $910 per square foot, and the West Side at $946 per square foot.
• Co-ops averaged 92 days on market, down from 141 last year at this point and down from 110 in the prior quarter.
• The Listing Discount was 7.3%, down from 8.7% last year but up from 3.8% in 1Q.

Manhattan Condo Market

The big story in the condo market is that sales numbers are up, as they are all over the City, but the price indicators remain mixed. Notably, the listing discounts have risen, pointing to a trend of sellers testing the market by setting higher prices but meeting resistance from buyers.

• There were 1,553 sales, almost double the 804 sales in last year’s 2Q, and up 22% from the 1,273 sales last quarter.
• The listing total was 4,209 units, excluding “shadow inventory,” which was 15.5% below last year’s 2Q and virtually identical to last quarter’s 4,218 listings.
• The median sales price was $1,100,000, which is 10.1% higher than last year at this point, and 3.3% higher than last quarter’s $1,065,000.
• The average sales price was $1,680,236, up 9.5% last year at this point, and holding steady with last quarter’s $1,690,399.
• The average square footage of properties sold was 1,482 square feet, up from 1,299 square feet at the same time last year.
• Average price per square foot was $1,134, down 4% from last year at this point, and down 1.7% from $1,154 in 2Q.
• Average days on market was 115, down dramatically from 181 in 2Q of last year, and down from 135 in 1Q of this year.
• The listing discount was at 10.5%, up from 7% last year and 6.7% last quarter.

Manhattan Luxury Market

The luxury market is seeing signs of renewed life, working off excess inventory and seeing price indicators stabilize.

• There were 1,304 listings over the $3,000,000 threshold, 29.3% fewer than 1,844 at this time last year and 13.2% fewer than the 1,502 listings last quarter.
• The median sales price for luxury apartments was $4,093,365, 11.8% higher than last year’s $3,660,608 but down 10.7% from $4,582,125 last quarter.
• The average sales price was $5,169,161, up 8.6% from last year at this point, but down 6.9% from last quarter.
• Average price per square foot held steady at $1,843, changing little from last year’s $1,848 and last quarter’s $1,881.
• The luxury market averaged 146 days on market, well down from 182 days at the end of last year’s 2Q as well as last quarter’s 193 days.
• The listing discount was 6.4%, less than last year’s 8.6% but higher than last quarter’s 3.6%.

Manhattan Loft Market

Like in other parts of the market this quarter, sales were up. But unlike any other sector, the sales in the loft market were up 263.9% from last year! That’s the good news. Less emphatic are the price indicators, that brought back mixed results.

• There were 262 loft sales, up that amazing 263.9% from 72 last year, and a 45.6% increase from last quarter. The mark was well over the 193 sale quarterly average over the past 20 years.
• Listing inventory was 548, 25.6% below last year at this time and 1.4% below last quarter.
• The median sales price was $1570,000, 15.9% below last year at this point, but up 12.1% from last quarter.
• The average sales price was $2,057,776, 5.7% higher than last year at this time and 0.9% higher than 1Q.
• Price per square foot was $1,145, down 4.3% from last year at this point and 2.1% up from last quarter.
• Days on market was 80, the quickest number in over 10 years. Last year at this point the average days on market was 138, and last quarter was 146.
• The listing discount was 5.4%, lower than last year’s 7.2% but above last quarter’s 3.3%.

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