In April 2015 the condo and co-op markets showed further separation in supply/demand dynamics. In terms of pricing, the co-op market responded to the still falling supply and continuously strong demand with significant price gains. The condo market did not see the same annual price gains, due to a decrease in three+ bedroom sales, increasing supply, and high current asking prices.
Market Wide Summary
Days on market decreased for coops while the figure increased for condos. Negotiability remains low in both markets, however this month co-ops saw a very tight market with an average sale price a fraction above the last asking price. Market-wide contracts signed were up 7% compared to last year. Despite a 3% increase in total inventory, buyers may be hesitant to list their units because replacement options are limited at affordable price points. While sales under $2M represent 72% of the market, listings under $2M make up just 57% of inventory.
Condominium Market Snapshot
The decrease in three+ bedroom sales is the main driver of the median price decrease and suggests average prices may have had stronger gains. Indeed, within bedroom categories all but one bedrooms showed price per square foot increases compared to last year. Despite fewer sales, three bedrooms saw the largest price gain, up 15% to $2,446 per square foot. Inventory continues to increase in the condo market and the listings are still skewing significantly more expensive than condo sales.
Co-ops showed strength for sellers in every metric in April 2015. All prices increased by double digits, with a 22% increase in average price versus April 2014. Median and average price per square foot also increased, 12% and 13% respectively. Within bedroom categories two and three bedrooms saw the greatest price increases. Two bedroom units increased 17% to $1,343 per square foot this month. One bedrooms, as with the condo market, saw a decrease in average price per square foot.
Cooperative Market Snapshot
Buyer negotiability in the co-op market has been very small for quite a while but it disappeared entirely in April, with the average unit selling 0.1% above its last asking price. Supply is constrained while demand remains strong; inventory decreased, year-over-year by 3% but contracts signed are up 4% versus April 2014. Days on market came down 8% from last year to 79 days.
At 6,004 listings inventory is higher than it has been for the last four months. Spring typically sees strong inventory growth. This month a significant 2,459 new listings were added to the market, 14% more than were added in April 2014. Due to the large number of new listings, total inventory increased 14% since last month and a 3% increase versus April 2014. Despite the gains inventory is still low historically.
Manhattan New and Total Listings
Within the co-op market, inventory remains at historic lows, with annual listing decreases every month. Co-ops continue to represent a smaller share of inventory than of sales; just 48% of listings are co-ops compared to 56% of sales.
As always, I will continue tracking the residential market closely throughout 2015, and would welcome the opportunity to answer any questions you may have about the market report or the market generally. If you have any questions regarding your future and specific needs, please contact me for expert market knowledge and exceptional service.
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