Apartment prices in Manhattan dipped in the fourth quarter of 2017, 7 percent to an average $1,921,671, according to Halstead’s Fourth Quarter 2017 Market Report.
“After a strong start to 2017, the Manhattan residential market slowed in the second half of the year,” says Diane M. Ramirez, chairman and CEO of Halstead. “The luxury market was relatively quiet in the fourth quarter, bringing the average apartment price down, as we saw uncertainty from buyers related to changes to the tax code. Now that the implications of the changes are clearer as we head into 2018, buyers are starting to become more decisive and ready to move on properties they perceive as a great value.”
More highlights from the report include:
- The average price for all co-opsrose 2 percent from the fourth quarter of 2016 to $1,252,100. While smaller apartments saw higher prices, the average three-bedroom and larger co-op price fell 18 percent compared to a year ago;
- Like co-ops, condossaw a sharp decline in the average price of three-bedroom and larger apartments from a year ago, driven by a change in the mix of new development condo closings. Overall, the average condo price was 11 percent lower than in 2016’s fourth quarter;
- The average price for resale apartmentsdrifted 2 percent lower over the past year to $1,482,721. The middle of the market continued to show strength, however, as the median resale price showed a 3 percent improvement from 2016’s fourth quarter;
- Co-op resaleprices averaged $1,235,878 in the fourth quarter, a slight improvement from 2016’s comparable period. A sharp decline in prices for three-bedroom and larger units was offset by increases in smaller units;
- The average condo resaleprice of $1,908,035 was 4 percent lower than a year ago. While modest gains were seen in all sizes categories, buyers favored smaller apartments more than a year ago, which brought down the overall average price;
- The highest percentage of resalesin Manhattan was in Midtown at 22.8 percent, followed by the East Side at 22.1 percent;
- Resale apartments sold in the fourth quarter spent an average of 90 dayson the market, up slightly from a year ago;
- Sellers received 4 percent of their last asking price, down from 97.9 percent a year ago; and
- While 9 percent higher than the prior quarter, the new developmentaverage price was still 19 percent below a year ago. The 30 percent reduction in new development closings over $10 million sheds light on the nature of this decline. Despite lower prices, the number of new development closings was 13 percent higher than the same period in 2016.
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