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Manhattan Residential Market Showed Signs of Improvement in the First Quarter of 2020, According to Halstead Market Report

Photo courtesy of Halstead

The Manhattan apartment market showed signs of improvement, according to Halstead’s First Quarter 2020 Market Report. Resale apartment prices ticked up slightly to an average price of $1,560,357, a modest gain over last year. The number of reported closings — at 2,093 — also rose 9% compared to 2019’s first quarter.

“We saw improvements in the real estate market during the first quarter as buyers started to respond to low mortgage rates, a great selection of inventory, and sellers who were willing to negotiate,” said Diane M. Ramirez, chairman and CEO of Halstead. “Like many other industries across New York, the coronavirus pandemic has put real estate activity ‘on pause’ for the time being. However, we anticipate a pent-up demand for real estate once the crisis eases and things return to normal.”

Halstead’s First Quarter 2020 Market Report also revealed:

  • The average apartment price fell 10% over the past year to $1,849,081. This decline is attributable to the new development market, as the resale average price was up slightly;
  • The average condo price, at $2,589,108, was 15% lower than the same period last year. Condo numbers a year ago were inflated by closings for super-luxury developments including 520 Park Avenue and 200 Central Park South;
  • Co-op prices averaged $1,303,734 in the first quarter, just below a year ago. Studios posted the biggest pricing gains, while two-bedrooms saw their average price fall 7%;
  • At $3,067,341, the average new development price was 29% lower than a year ago and median prices fell by 19% to $1,783,495. While this may seem to be a significant drop, much of it was expected. A pickup in closings at the highest end a year ago, including a record $240 million sale, inflated the first quarter of 2019’s figure;
  • On a per-square-foot basis, the average new development price was just 4% lower than 2019’s first quarter;
  • Looking at only co-op resales, the average price rose 1% to $1,321,895, as declines in one- and two-bedroom apartments were offset by gains studio and three-bedroom and larger units;
  • Prices for resale condos averaged $2,043,679, just below last year’s figure. Two-bedroom and larger condos saw their average price rise, while prices for smaller condos fell compared to 2019’s first quarter;
  • Resale apartments sold in the first quarter spent an average of 135 days on the market, which was 14% longer than a year ago;
  • Sellers achieved 96.4% of their final asking price, down from 96.6% in the first quarter of 2019; and
  • The highest percentage of resales in Manhattan was on the East Side (59th Street to 96th Street) at 23.6%, followed by Downtown (South of 14th Street) at 19.6% and the West Side (59th Street to 110th Street) at 18.7%.

You can view the entire report here.