New development closings, led by a record $240 million sale at 220 Central Park South, helped push the average apartment price up to $2,120,822 in the first quarter, according to Halstead’s First Quarter 2019 Market Report. While this figure is 12% higher than a year ago, it does not represent the overall market. The median apartment price of $1.1 million remained unchanged and resale apartment prices declined 3% from one year ago. The Halstead Market Report is based on 1,953 first quarter sales, 7% fewer than the same period a year ago.
“The resale price decline indicates that prices are starting to adjust at a faster pace, which should help pick up the pace of sales as we look forward. Already, we are seeing a more hand-in-glove alignment between sellers and buyers – sellers are getting real with their pricing and buyers are showing less hesitancy because of lower interest rates and a better understanding of where they stand in regard to tax reform,” said Diane M. Ramirez, Chairman & CEO of Halstead.
Other notable findings from Halstead’s First Quarter 2019 Market Report revealed:
- Co-op prices averaged $1,331,987, coming in 2% less than 2018’s first quarter. Three-bedroom and larger co-ops continued to struggle, as their average price was 10% below last year’s figure;
- The surge in luxury new development closing wreaked havoc on the condo data in the first quarter, pushing the average price 25% higher. Not surprisingly, the three-bedroom and larger figure posted the steepest rise, reaching $8.8 million;
- Led by 520 Park Avenue and 220 Central Park South, new development prices averaged a record $4,945,417 in the first quarter. Median prices, which fell 5%, reveal how abnormally high these closings are; the median measures the middle of the market and isn’t as impacted by these high-end sales;
- In the first quarter 27.5% of new development closings occurred south of 14th Street, the most of any market area;
- Resale apartment prices averaged $1,575,059, a 3% decline from the prior year. The median price was virtually unchanged from 2018’s first quarter, at $978,120. Activity remained timid, with the number of sales 7% lower than one year ago;
- Looking at only co-op resales, the average price fell 3% from a year ago to $1,319,882. Larger apartments continued to see their prices fall, with the three-bedroom and larger average price 12% lower than the first quarter of 2018;
- Condo resale transactions in the first quarter saw an average price of $2,086,883, falling 2% over the past year; all sizes saw their average price decline, with the biggest fall occurring in two-bedroom and larger apartments;
- Resale apartments sold in the first quarter spent an average of 121 days on the market, 21% longer than a year ago;
- Sellers of these apartments received on average 96.3% of their last asking price;
- Both the average and median loft prices per square foot declined compared to the first quarter of 2018; and
- The highest percentage of resales in Manhattan was on the East Side at 23%, followed by Midtown and Downtown (South of 14th Street), both at 19.4%.
