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While impressive gains were recorded in both resale and new development Manhattan apartment prices in the third quarter 2016, prices for new developments soared to record-setting highs.
According to the third quarter Manhattan residential report released today by real estate firm Brown Harris Stevens (BHS), the average Manhattan apartment sale price soared to $2,044,287. This was an 18 percent increase from the previous year, but virtually unchanged from the previous quarter. This figure includes both new developments and resale apartments combined.
Meanwhile, the $1,085,000 median sale price was up 9 percent year-over-year, but recorded a slight dip from the previous quarter’s $1.1 million median.
Both average and median apartment prices for new developments broke records in the third quarter, bolstered by sales activity at 432 Park Avenue — which included an $88 million closing.
The average new development apartment sale price skyrocketed nearly 50 percent to $4.3 million from the same quarter last year. This was 15 percent higher than the previous quarter. Meanwhile, the median price for new developments soared 40 percent from last year to $2.5 million.
Resale apartment prices also recorded gains in the third quarter. The average resale price increased 5 percent from last year to $1.5 million. This was only a slight increase from the previous quarter’s price.
The median resale price set a new record at $960,000. This was 6 percent higher than last year, and 1 percent above last quarter’s previous record high.
According to BHS, the continued climb of the median resale price reflected the strength of the middle-to-lower end of the resale market, where inventory remains at critically low levels.
“A vast majority of the Manhattan housing stock continues to be resale apartments. Reporting on high end new development sales often impacts perception of the overall market,” said Hall F. Willkie, president of Brown Harris Stevens Residential Sales, in the report.
Apartments were on the market an average of 75 days, just 5 days longer than last year.
Buyers paid an average of 98.4 percent of the asking price. This was down slightly from the 99.5 recorded last year.
You can read the entire BHS quarterly report here.