Halstead Property

Mentioned in this Article:

Diane M. Ramirez
President

Gregory J. Heym
Executive Vice President, Chief Economist

Prices Dipped Slightly Over Past Year As Condo Sales Declined

According to the fourth quarter Manhattan residential market report released by Brown Harris Stevens, the average Manhattan apartment sale price of $1,391,745 was down slightly from the last quarter and down just 3% from same period in 2010.
A leading factor in the lower average price was a steep decline in condo sales, which accounted for 40% of all sales, compared to 46% in 2010's fourth quarter.
Because condos, which typically sell for more than co-ops, comprised a smaller share of sales, the overall average apartment price was driven lower.
The average price for cooperatives sold during the fourth quarter of 2011 was on par with a year ago, at $1,149,203.
The average condominium price was $1,825,728, up 4% from a year ago with most size categories seeing an increase in price.
There were 1,645 fourth quarter closings reported at the time of this report, 13% less than a year ago.
"A key factor in the decrease in closing in the fourth quarter, was the threatened expiration of the Bush tax cuts which led many high-end owners to sell before 2010 ended," said Hall. F. Willkie, president of Brown Harris Stevens Residential Sales.
"New York City's recovery re-mains well ahead of schedule. This combined with a relatively low rate of available apartments has led the Manhattan market to continue to outperform the rest of the nation."
The average price for three- bedroom and larger co-ops rose 18% over the past year, all other size categories of co-ops saw their average price decline during this time.
Helped by three closings for more than $20 million, the average price for three-bedroom and larger apartments on the East Side rose 42% compared to 2010's fourth quarter.
Over on the West Side, sales at The Laureate once again impacted average sales prices.
The price per square foot for condos jumped 20% over the past year to $1,571.
In the downtown market, the average condo price per square foot rose 5% over the past year to $1,257.
Co-op prices declined, with the average price per room 8% lowed for prewar and 4% lower for postwar apartments.
Other firms reported a drop sales prices this past quarter.
Halstead Property's latest in market report shows that the average apartment price fell slightly to $1,391,745, a 3% decline from a year ago.
"The Halstead Property Fourth Quarter Market Report shows that we are getting back to a healthy ebb and flow in our market. Traditionally, the fourth quarter is slower compared with the busier second and third quarters.
Also, the decline in the number of condo closings is not overly surprising when you consider we. have twice the amount of co-op inventory than condo inventory in the Manhattan marketplace and the proper proportion will occur over time," explained Diane M. Ramirez, President of Halstead Property.

Wednesday, January 11, 2012