4Q 2010 Manhattan Market Report

The final quarter of 2010 saw a continuation of stabilized prices, sales at seasonal norms and a modest level of inventory.

In wrapping up 2010, it is encouraging to reflect on how quickly the Manhattan housing market rebounded since the credit crunch began more than two years ago. Although the economy still faces many challenges, Manhattan’s final quarter of 2010 showed a continuation of what we have seen over the past several quarters: stabilized prices, sales activity at seasonal norms and a modest level of inventory. This modest level of inventory has enabled days on market—the number of days between the change in the list price and contract date—to fall from a record high last year to 125 days this quarter, the market average of the last 15 years.

• Fourth quarter listing inventory increased 5.6% to 7,232 from 6,851 in the prior year quarter—the same quarter that had the record surge in sales that worked off excess inventory during that period. The new year will begin with a modest level of inventory entering into one of the highest sales periods of the year.

• There were 2,295 sales in the fourth quarter, 7.2% below 2,473 sales in the same period last year and 13.8% below the 2,661 sales of the prior quarter. However, the comparison to the same period last year is a comparison to a quarter that represented the largest fourth quarter market share of sales activity in more than 20 years.

• The median sales price of a Manhattan apartment was $845,000, up 4.3% from $810,000 in the same period last year, but down 7.5% from $914,000 in the prior quarter. Median sales price edged higher due to the shift in the mix from last year’s higher concentration of smaller, entry-level sales.

• The number of days between the change in the list price, if any, and contract date— known as days on market—fell sharply to 125 days from a record 204 days in the same period last year. The current level was unchanged from the prior quarter and consistent with the 126 days on market average of the past 15 years.

• The percentage difference between the listing price at time of contract and the contract price—the listing discount—fell sharply to 8% from its 15 year high of 12.8% in the prior year quarter.

Co-Op Market

• The median sales prices of a Manhattan coop was $685,000, up 8.7% from the prior year quarter median sales price of $630,000 and down 11.9% from the prior quarter median sales prices of $777,500.
• The average sales price was $1,200,589, up 23.1% from the prior year quarter average sales prices of $975,049 and down 4.1% from the $1,251,959 seen in the prior quarter
• Price per a square foot was $928, up 0.8% from $921 per square foot in the prior year quarter.

Condo Market

• The median sales prices of a Manhattan condo was $997,885, up 0.3% from $995,00 in the prior year quarter, and down 10.9 % from the prior quarter of $1,120,000.
• The average sales prices in the third quarter was $1,784,296, up 9.3% from the prior year quarter averages sales price of $1,631,872, and up 3.8% from the prior quarter of $1,719,296.
• Price per a square foot was $1,198, down 0.1% from $1,199 per square foot in the prior quarter.

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