A surging local and national economy, low interest rates, foreign investment and record stock prices have kept demand for Manhattan real estate very strong at a time when supply remains constrained. Low supply and the sharp price increases over the past year have led to some buyer frustration, and fewer closings than last year’s comparable period. Despite this, prices for resale apartments have risen over the past year, albeit at a slower pace.
An increase in new luxury development closings helped bring the average price for all Manhattan apartments to a record level in the fourth quarter. At $1,728,831, the average price was 8% higher than a year ago, and broke the prior record of $1,700,581 set in 2014’s first quarter. The median price of $960,000 was 10% higher than a year ago, and the second highest figure ever. Continued low inventory levels, combined with sharp price increases, brought the number of closings down 17% from 2013’s fourth quarter.
The average price for resale apartments of $1,434,037 was 3% higher than a year ago, but down from the prior quarter. The median resale price of $850,000 up 4% from the fourth quarter of 2013, but also down from the previous quarter. Existing condo prices rose at a slightly higher pace than co-ops over the past year, as luxury co-op activity fell in the fourth quarter.
Apartments in new developments sold for an average of $3,186,953 in the fourth quarter, 11% more than a year ago. There were 4 new developments closings for at least $40 million in the fourth quarter, compared to none a year ago. This illustrates the increase in closings at the top end of this market.
The full version of the report can be viewed at the link below: