Manhattan Residential Prices Jump New Sales Boon to Increased Market Activity

Midtown Manhattan skyline in New York City as seen from Wall Street (By David Shankbone via Wikimedia Commons).

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.

Volume Up

“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.”

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2 Comments

  • The second quarter Manhattan Sales report by Douglas Elliman Real Estate shows NYC continues to be very expensive for folks who want to purchase property. The hi-rise new Manhattan condo buildings offering new apartments unlike a pre-war Manhattan Co-op building that many come with old plumbing and electric, along with required and strict renovation approval, are modern and very attractive - especially because they offer a lot more amenities - like a gym, roof top terrace access for all residents, large laundry room and bike room. The bottom line for middle class working men and women including retirees is you purchase what you can afford. Then, comes other financial expenses - maintenance fees, utilities, etc. Also, selecting a professional, honest real estate broker to work exclusively for your best interest and protection in purchasing an apartment becomes extremely important when he/she must negotiate with the sellers broker, who can be deceptive.
  • Interesting articles