Photo: Michael Ursino/Flickr
The fourth quarter of 2016 proved to be a mixed bag for Manhattan apartment sales, with the year closing without the frenzy of sales seen in previous years. However, average sale prices managed to reach a record high despite a slip in the number of sales from 2015. In addition, very strong growth was also recorded in both luxury and new development prices, according to a newly released quarterly report by New York brokerage Douglas Elliman.
The average apartment sale price in Manhattan rose 7.7 percent year-over-year to a new record high of just under $2.1 million in the fourth quarter of 2016, says the Elliman data. However, the number of sales declined 3.7 percent from last year.
Meanwhile, listing inventory increased nearly 7 percent from 2015, but there was “more supply and less demand” than the previous year. The market share of bidding wars also “fell by more than half, to the lowest level in four years.”
Apartments were on the market for an average of 94 days, up from the 79 days recorded last year.
The Elliman report also pointed out that while overall sales were down from last year, levels “remained 10 percent above the decade fourth quarter average.”
New developments recorded a nearly 50 percent year-over-year average sales price increase to $4.9 million in the fourth quarter. However, the number of new development sales dropped 13.2 percent, despite a 33.7 percent increase in listing inventory from last year. The new developments market share fell to 16.7 percent in the fourth quarter, down from last year’s 18.6 percent market share.
Meanwhile, the luxury market, which is composed of apartments selling at $4.5 million and over, recorded strong average sales price growth, increasing 21.7 percent year-over-year to a record high of $9.3 million. Still, despite strong price growth, luxury listing inventory dropped 11.6 percent from 2015.
During the fourth quarter of 2016, the second highest number of sales at or above $10 million was recorded since the financial crisis began in 2008, according to Elliman.
Click here to read the entire report.