The average and median apartment prices reached record levels in the first quarter, with a large number of luxury new development closings. With the help of 432 Park, a record number of new development closings topped the $10 million mark. New developments were also responsible for the 10% increase in the total number of sales from a year ago, as new development closings jumped 70%.
Looking at just the resale market, the average apartment price fell 1% from 2015’s first quarter to $1,542,348. A decline in luxury resales was primarily responsible, as the median resale price hit a new record of $965,000. Price increases were greatest over the past year for studio and one-bedroom resales, due to critically low inventory levels. The number of resale closings was 2% lower than the first quarter of 2015.
Prices for new developments shattered all records in the first quarter. Their average price reached $3,608,322, which was 15% higher than a year ago, and broke the previous record set in 2014’s fourth quarter. The median price of $2,349,660 was 21% higher than the prior record set in the fourth quarter of 2015.
While concerns about equity markets, China’s economy, oil prices, and interest rates have clearly impacted consumer confidence, Manhattan apartment prices have remained stable. New developments are responsible for the record prices we see now, but remember-the average resale price is just 1% lower than a year ago. While the slowdown at the high end of the resale market was expected, the strength of the middle-to-lower end has been surprising to the point of pushing the median resale price to a new record.