Brand Report: Record Prices for Manhattan Apartments in Q1

Apartment prices in Manhattan hit new records in the first quarter of 2017, reaching an average $2,174,105 and a median $1,150,000, according to Halstead’s First Quarter 2017 Market Report. The growth was driven by luxury new development closings and resale condo sales.

“The data for the first quarter was better than expected, especially considering the levels of uncertainty during the fourth quarter when many of these deals were negotiated,” says Diane M. Ramirez, chairman and CEO of Halstead. “Resale closing prices were 5 percent higher than a year ago, as high-end co-op sellers continued to adjust their asking prices to the market conditions. The middle- to lower-end of the market, however, remains strong due to low inventory.”

More highlights from the Report include:

Resale apartment prices averaged $1,561,911, 5 percent higher than a year ago and the highest level since the second quarter of 2015;

The median resale price of $955,000 bested the prior record of $950,000 set in 2016;

While the total number of sales was down slightly from a year ago, the number of resale closings rose 5 percent;

Three-bedroom and larger cooperative apartments saw their average price decline 11 percent over the past year to $3,264,544. This was the only size category to post a decline in average price compared to a year ago, and this helped bring the overall average co-op price down 4 percent;

The strength of the luxury condo market helped bring the overall average condo price to a record $3,163,987 in the first quarter. Three-bedroom and larger condos saw the average price jump 13 percent over the past year to $7,775,025;

Pushed by a 15 percent gain in three-bedroom and larger apartments, the overall condo resale price reached a record of $2,116,341 in the first quarter. Studio condo prices rose 6 percent from the first quarter of 2016;

New development closing prices averaged $4,345,818, a 15 percent improvement from 2016’s first quarter but down slightly from the record set in the previous quarter;

Just under 45 percent of all new development closings in the first quarter were south of 14^thStreet, by far the most of any market;

The average resale co-op price fell 6 percent over the past year to $1,217,333. Three-bedroom and larger apartments were the weak spot in this market, as their average price fell 10 percent from a year ago, while all other sizes of co-ops posted small gains in their average price during this time;

The highest percentage of resales in Manhattan were in Midtown at 20.6 percent, followed by the East Side at 20.3 percent;

Resale apartments spent an average of 95 days on the market, 14 percent longer than a year ago, and the most amount of time since the second quarter of 2013; and