In the third quarter, the median price of a Manhattan apartment reached a record high of $995,000, an 11% gain from the prior year. Fewer high-end resale closings brought the average apartment price down from the second quarter, but at $1,722,955 was still 5% higher than the third quarter of 2014. While high-end resale closings were down, overall there were 9% more apartments sold than in 2014’s third quarter. A jump in new development closings helped fuel this increase.
Over the past year, the average price for co-op and condo resale apartments fell, attributable to declines in three-bedroom and larger apartments. All other size categories posted an increase in their average price compared to 2014’s third quarter. The co-op average resale price fell 1% over the past year to $1,240,031, while the comparable condo figure displayed a 5% decrease to $1,868,534.
While the third quarter brought fewer high-end sales, this was mainly the result of tight inventory and aggressive pricing. Recent concerns about China’s economy, rate hikes, and a volatile stock market had a limited impact on these findings. The stock market began its decline in late August, long after most of the contracts for third quarter closings were signed. We won’t know the real impact of these events until our next few reports.