Photo: Robert Clark
Manhattan’s home prices may have been down while sales rose in June, but the market’s overall temperature was noticeably cooler compared to just a year ago.
The difference in the aggregate sales total this June compared to last year is a staggering $1 billion, according to a report released yesterday by the listing site CityRealty.com.
“With the benefit of hindsight, we can now categorize June 2017 as the biggest month for residential sales ever in Manhattan,” CityRealty.com’s Director of Research Gabby Warshawer tells Livabl.
There were a total of 957 recorded home sales in Manhattan in June, which was up from 923 recorded the previous month.
Sales volume totaled $1.8 billion. June’s figure fell below the $2 billion in sales recorded in May and was well below the $2.8 billion recorded June 2017.
“The major contributing factor to this change in the market is that there are fewer closings at very expensive new condos this year and sales in those buildings buoyed aggregate sales from 2014 through 2017,” Warshawer says.
Over the last month, the average sales price of a Manhattan apartment, including co-ops and condos, fell from $2.2 million to $1.9 million in June.
Manhattan condos averaged $2.5 million in June while co-ops held steady at an average of $1.5 million. There were 408 condo sales and 549 co-op sales in June.
Warshawer says that co-op sales have been the “one bright spot” in the Manhattan real estate market this year.
“Thus far in 2018, average prices for co-ops are the highest we’ve ever seen. The trend of the co-op market being fairly robust is likely to continue through the summer,” Warshawer predicts.
There were fewer new construction sales in June, dropping from 92 recorded sales in May to 76. Since May, the price of a Manhattan new construction condo slipped from an average of $4.4 million to $4 million in June.
The temperature of Manhattan’s new construction submarket is also cooling.
“We’re seeing the new development market make up a smaller portion of the aggregate sales total this year than in the past few years,” Warshawer says.
Warshawer goes on to add that while resales of the most expensive units are “not trading at a great clip, but more moderately priced units are selling.”
June’s most expensive sale was a 7,058 square foot five-bedroom in Chelsea’s Walker Tower, which sold for $31 million. The unit previously sold for $31.3 million in 2014.
Click here to read the entire report.