A rush of new development closings, heavily influenced by building completion, led to the average Manhattan apartment price increasing by 3%, according to Halstead’s Second Quarter 2019 Market Report. There was also an 11% increase in the number of sales from the second quarter of 2018. However, these figures are not representative of the overall market. The average price for resale apartments fell to $1,641,989, a decrease of 5% compared to the second quarter of 2018. The Halstead Market Report is based on 2,519 second-quarter sales, 11% more than the same period a year ago.
“The trend we saw early in the year continued in the second quarter of 2019, with new development sales pushing prices higher but resale prices correcting,” said Diane M. Ramirez, Chairman & CEO of Halstead. “However, it appears like we are turning a corner as more sellers are adjusting to the market and pricing realistically, and buyers who have been sitting on the sidelines are reacting positively.”
Other noteworthy findings from Halstead’s Second Quarter 2019 Market Report revealed:
- Co-op prices averaged $1,337,649, coming in 4% less than 2018’s second quarter. Three-bedroom and larger co-ops continued to struggle, as their average price was 10% below last year’s figure;
- The condo average price was essentially unchanged from a year ago, at $2,903,711. While the average price did rise for all size categories, three-bedroom and larger apartments accounted for a smaller share of the market, which kept the overall average price from rising;
- Led by One Manhattan Square and 15 Hudson Yards, the number of new development closings climbed 71% compared to the second quarter of 2018. Meanwhile, prices averaged $3,481,017 in the second quarter, which is 9% less than last year’s figure, proving a dip in closings at the highest end of the market, as the median price and average price per square foot were both higher than a year ago;
- In the second quarter 40% of new development closings occurred south of 14th Street, by far the most of any market area;
- Resale apartment prices averaged $1,641,989, a 5% decline from the prior year. The median price showed a slight increase to $986,250 during this time. Activity remained consistent, with the number of resale closings virtually unchanged from 2018’s second quarter;
- Looking at only co-op resales, the average price fell 5% from a year ago to $1,329,054. Larger apartments continued to see their prices fall, with the three-bedroom and larger average price 12% lower than the previous year;
- Condo resale transactions in the first quarter saw an average price of $2,187,444, falling 4% compared to the same time last year; all sizes saw their average price decline, with the biggest fall occurring in two-bedroom apartments, which fell 10% from the previous year;
- Resale apartments sold in the first quarter spent an average of 131 days on the market, 27% longer than a year ago, and the highest level within the past seven years;
- Sellers of these apartments offered their biggest discounts in nine years, receiving on average 96.1% of their last asking price;
- Both the average and median loft prices per square foot declined compared to the second quarter of 2018; and
- The highest percentage of resales in Manhattan was on the East Side at 23.5%, followed by Midtown at 19.6% and Downtown (south of 14th Street) at 19.5%.
