It was a mixed fourth quarter 2017 for condo sales prices in Manhattan, while co-ops did slightly better, according to the latest quarterly sales report by Douglas Elliman for the aforementioned borough.
According to the study, the average sales price for a Manhattan condo for that quarter was $2,654,848, a drop of nearly 15 percent from the same period a year ago. The median sales price was $1,634,186, a decline of almost 5 percent year-over-year. The number of closed sales also fell about 14 percent compared to 2016's fourth quarter to 1,173.
In contrast, the average sales price for a co-op in Manhattan in fourth quarter 2017 was $1,235,038, a gain of 1.6 percent year-over-year. The median sales price was $770,000, a 2 percent increase from the same quarter in 2016. But like for condos in that same quarter, the number of closed sales for Manhattan co-ops experienced a dip--of almost 11 percent to 1,341.
Overall, according to Elliman, average sales prices in the borough dropped below $2 million for the first time in seven quarters. “This can be attributed to final moments of the new development contract pipeline where deals signed several years ago have closed once construction was completed,” said Steven James, CEO of New York City, Douglas Elliman, in a news statement. “Amid all the changes and uncertainty since Labor Day, the market is seeing modest median price growth, bidding wars remaining above average and resale inventory still fairly tight overall -- especially in the entry and mid-markets.”
Elliman also added that housing sales have cooled down over "hesitation" about the new GOP-backed tax bill that was signed into law by President Trump last month.
“I’m not forecasting the price impact of the tax bill yet, but I am saying it has more of an effect on the higher end and it will take buyers and sellers a while to sort it out over the next year or two,” Jonathan Miller of Miller Samuel Inc., who wrote the report, said in a statement. “I expect that in the near future, buyers will come in lower on offers initially and sellers will resist, a repeat of what we have been seeing. However, I wouldn’t be surprised to see a sales pickup in 1Q18 as fall’s pent-up demand is released.”
To read the full report by Douglas Elliman, click here.
David Chiu is an associate editor at The Cooperator.