Boosted by a heavy volume of new development closings, Manhattan apartment prices soared in the second quarter of 2016, rising 13.1 percent over the same period last year.
According to the second quarter Manhattan Sales report by Douglas Elliman Real Estate, resale activity of co-ops and condos, which represented 81.5 percent of the market, showed a median sales price of $1.1 million. Median sales prices of new developments stayed steady at $2.6 million, the report prepared by Jonathan Miller of the appraisal firm of Miller Samuel, Inc., said. The median sales price in 2015 was $980,000, the report said.
“Manhattan apartment prices continued to set records partly due to the heavy volume of new development closings that went to contract 12 to 18 months ago,” Miller said.
The number of resales actually fell 9.4 percent to 2,231, but the number of new development closings surged 138.2 percent to 505 sales from the same period a year ago, according to the report.
“Manhattan sales volume for the spring apartment market was consistent with long-term averages,” noted Elliman President & CEO Dottie Herman. “Additional inventory finally entered the resale market after three years of unusually low supply, helping ease the market’s pace to more sustainable levels. The entry and middle markets still remain the fastest moving and we expect more of the same in the next few quarters.”