Manhattan’s residential co-op and condominium market ended last year on a more stable note than it did in 2016 despite some signs of trouble, according to Corcoran’s fourth quarter 2017 report.
“Three of the past four quarters registered level or annual increases in closed sales,” said the study. The fourth quarter was essentially unchanged over the same quarter the previous year.
According to Corcoran’s report, the median price for Manhattan condo resales decreased 5 percent over fourth quarter 2016, but strangely the median price per square foot remained unchanged at $1,463 year-over-year. This discrepancy is attributed to “the fall in market share of closings above $1 million.” That fall resulted from the decline in closed sales at new developments, “a decrease that was less a reflection of demand and more about the timing of current building cycle and completions,” said the report.
The median price for Manhattan co-op resales showed similar results during fourth quarter 2017. A positive change of 4 percent over fourth quarter 2016 was indicated, but there was a drop in average price for co-op resales from $815,000 to $785,000, representing a 4 percent decline from third quarter 2017 to fourth quarter 2017, for reasons similar as explained above for condominium sales. In this case, however, the declining market share was in closed sales of units under $1 million. Median price per square foot rose 2 percent year-over-year, reflecting that change.
Perhaps the most significant changes in the market are in inventory and months-of-supply. Market wide, the overall number of units available increased by 9 percent since fourth quarter 2016, jumping more steeply from the third to fourth quarters in 2017. “This represented the highest fourth quarter total since 2011,” said Corcoran. “This inventory increase was fueled by increases in new development inventory at recently launched developments Downtown.”