Corcoran has released its Second Quarter Corcoran Report, our quarterly survey of residential real estate sales in Manhattan. This report compares data based on deals that closed in 2Q 2009 (April 1 through June 30) with that of 2Q 2008.
The impact of the credit crisis and the national recession manifested in this quarter's report with marked declines in sales activity and sale prices over the prior year. 2009's Second Quarter posted 50% fewer closings over 2008's. An oversupply of available properties coupled with retreating demand in the first part of the year forced sellers to lower prices in order to differentiate themselves, resulting in 12-15% price drops across the board. As a consequence, buyers have found themselves advantageously positioned with greater negotiability and have snapped up some of the best deals to be had in Manhattan in many years.
History demonstrates that the spring is the busiest season for real estate transactions and, despite the slower pace over 2008, the report reflects greater sales activity in the Second Quarter than the First. In addition, we have noticed a profound uptick in deal activity in May and June as pent-up demand from the early part of the year finally was unleashed on the market; June 2009 was even busier for our agents than the same month a year prior. Keep an eye out for our Third Quarter Report to track the impact of these deals as they begin to close.
New development sales - most signed between twelve and eighteen months ago - have also begun to feel the effects of a slower pace and noticeably fewer luxury property closings. New developments posted decreased sale prices and slower activity; 67% fewer new development properties closed this quarter than were sold in 2Q 2008, with an average 14% drop in price per square foot.
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