Manhattan’s residential real estate market has always been fluid, but increasingly it is becoming more multi-layered and segmented, with different price points moving in different directions. In the light of Q1 2016 stats which show average residential prices exceeding the $2M mark for the first time, it’s instructive to take a close look at inventory numbers and pending sales to see how they break out according to co-op versus condo purchases by price. Two important caveats are noteworthy when reviewing 2016 sales figures: for one thing, these averages are skewed by closings at high end new developments such as 432 Park Avenue and 150 Charles Street; secondly while sales records are an important part of history, it’s contracts signed that more accurately reflect the market moment since the closings for most new developments can follow contracts signed by as many as two years ago.
My children say I send the same message in each monthly column: price realistically and collaborate with a professional broker to help buy or sell your home. Undoubtedly, the transaction represents a significant portion of your net worth, so why even consider shortchanging yourself
Talk continues about a possible bubble in real estate. In the last year, prices have jumped as much as 30-40%, and the pace of trading has been frenetic. In the months and year ahead, however, a return to more balanced activity with modest price appreciation is welcomed.
Inventory has been shrinking steadily. But with new construction and new conversions in the works, more than 25,000 apartments are scheduled to come into the marketplace in the next 18 months. For certain, the market will be impacted. Will the “if-you-build-it, they-will-come” mentality continue? Undoubtedly, some developments will be more secure in their locations than others, like The Plaza, The Stanhope and The Mayflower Hotels.