Sales Up, Prices Up, Re-Sale Inventory Down, As Sellers Continue To Get Realistic

Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide, today releases the second quarter 2017 Manhattan Market Report for sales in Manhattan.The report, which now includes Northern Manhattan, reveals strong sales activity along with rising prices, bidding wars and more negotiability at the high end of the market. Northern Manhattan continues to show brisk conditions as buyers seek out affordability.

“What is clear that the Manhattan real estate market remains surprisingly robust, especially on the re-sale side,” said Steven James, CEO of New York City, Douglas Elliman.Prices have moved higher, including two new records set and there has been a sharp rise in sales, as inventory has slipped.”

Re-sales have been strong, as inventory in that market declined for the first time in three years.New development inventory, however, edged higher, as aspirationally priced listings were allowed to expire and listing discounts rose to tie the highest level in nearly five years, as sellers increasingly came down to meet buyers on price.

“High sales, record prices, re-sale inventory beginning to slip and still plenty of bidding wars (although at half the levels seems in 2015), is what we have seen in the second quarter of 2017,” said Jonathan Miller of Miller Samuel, Inc, the author of the report. “The key item from my perspective is greater negotiability at the high end of the marketplace. Listing discounts began rising in the last quarter which means that luxury sellers are becoming more realistic with pricing. Marketing time keeps expanding because buyers won’t budge. Marketing time keeps expanding because buyers won’t budge and that is making for more sales as sellers recognize that.”

“Northern Manhattan continues to show brisk conditions as buyers seek out affordability,” added James. Sales in Northern Manhattan sales are four times what they were in 4x more than they were 25 years ago.What is clear is that the market remains surprisingly robust, especially on the re-sale side.”

Highlights of the Douglas Elliman 2Q Manhattan Market Report:

- Price trend indicators moved higher, 2 set new records

- Sharp rise in sales as inventory slipped keeping market pace brisk

- New development inventory edged higher as re-sale inventory declined annually for first time in 3 years

- Overall market share of bidding wars slipped but remained above average

- Market share of cash sales fell to lowest level since began tracking more than 3 years ago

- Listing discount rose to tie the highest level in nearly 5 years as sellers increasingly coming down to meet buyers on price

- Luxury listing inventory fell sharply as aspirational priced listings were allowed to expire

Key Trend Metrics (compared to same year ago period)

- Median sales price jumped 7.3% to $1,189,011 [record]

- Price per square foot increased 0.8% to $1,773

- Average sales price rose 7.9% to $2,189,037 [record]

- Number of sales surged 15.2% to 3,153

- Listing inventory slipped 0.6% to 6,311

- Days on market rose 21.3% to 108 days

- Listing discount was 6.1%, up from 2.2%

- Absorption rate was 6.0 months, down from 7 months

Co-op Market

- Median sales price increased 3.4% to $793,750

- Price per square foot rose 1.3% to $1,348

- Average sales price rose 4.8% to $1,363,916

- Number of sales jumped 22.2% to 1,674

- Listing inventory slipped 0.4% to 2,775

Condo Market

- Median sales price increased 19% to $1,875,000 [record]

- Price per square foot rose 1.3% to $2,100

- Average sales price rose 13.2% to $3,122,946 [record]

- Number of sales increased 8.3% to 1,479

- Listing inventory slipped 0.9% to 3,536

Luxury Market (upper 10% of all co-op and condo sales)

- Median sales price was $6,836,269, up 3.5%

- Price per square foot rose 2.2% to $3,037

- Average sales price rose 7.6% to $9,280,290

- Listing inventory declined 11.2% to 1,235

- Luxury market threshold jumped 12.7% to $4,875,000

New Development Market (co-op and condo sales)

- Median sales price increased 22.8% to $3,306,656

- Price per square foot slipped 0.8% to $2,556

- Average sales price was up 7.3% to $4,703,544

- Number of sales rose 10.1% to 556

- Listing inventory rose 3.1% to 1,021

- Market share was 17.6%, down from 18.5%

Re-sale Market (co-op and condo sales)

- Median sales price increased 3.2% to $975,000

- Price per square foot was up 2.8% to $1,494

- Average sales price increased 10.3% to $1,650,698

- Number of sales rose 16.4% to 2,597

- Listing inventory slipped 1.3% to 5,290

- Market share was 82.4%, up from 81.5%

Highlights of the Douglas Elliman 2Q Northern Manhattan Market Report:

Overview

- Market wide apartment price trend indicators flirt with records as buyers hampered by limited supply

- Apartment listing inventory has fallen sharply year over year for the past 2 quarters

- Number of apartment sales moved higher as remainder of Manhattan sought out greater affordability here

- Market share of Manhattan apartment sales quadrupled from 2.1% in 2Q 1992 to 8.3% in 2Q 2017

- Townhouse sales continued to be held back by lack of supply

- Townhouse price trend indicators moved sharply higher

Key Trend Metrics (compared to same year ago period)

Co-ops & Condos

- Median sales price jumped 16.3% to $630,000

- Price per square foot increased 12.7% to $894

- Average sales price rose 18.7% to $778,657 [record]

- Number of sales increased 9.6% to 263

- Listing inventory fell 16.3% to 303

Townhouses

- Median sales price rose 9.3% to $2,187,500

- Price per square foot surged 36.3% to $943 [record]

- Average sales price rose 14.7% to $2,237,750

- Number of sales fell 25.7% to 26

- Listing inventory declined 40.9% to 55

About Douglas Elliman Real Estate

Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide. With more than 6,500 agents, the company operates approximately 90 offices in Manhattan, Brooklyn, Queens, New Jersey, Long Island, the Hamptons & North Fork, Westchester, Greenwich, South Florida, Colorado and Beverly Hills. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 59 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing; Manhattan’s largest residential property manager, Douglas Elliman Property Management with over 250 buildings; and DE Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit www.elliman.com.