Luxury new development closings kept the average Manhattan apartment price over $2 million for the second straight quarter. At $2,077,680, the average price was 16% higher than a year ago and just below the record set in the first quarter of 2016. The median price of $1,110,000 was down slightly from the first quarter, but still a 13% improvement from a year ago. The stock market turmoil at the start of the year played a major role in the 22% decline in resales from 2015’s second quarter.
The average resale price fell 4% from a year ago to $1,527,641, and has barely moved over the past three quarters. Smaller apartments continue to be the strength of the market, as the median resale price reached a new record in the second quarter.
While the headline market data continues to show rising prices, that is attributable to luxury new development closings where contracts were signed years ago. Resale prices are no longer showing growth, with the exception of smaller apartments. It remains clear that price adjustments are needed, particularly in the luxury resale market, for activity to pick up.
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