Manhattan Q2 Condo Market
Posted by Wei Min Tan on July 4, 2018
The Manhattan Q2 condo market property data is out. CNBC calls Manhattan in Q2 the worst second quarter since the financial crisis. But this was for the overall market which comprises both condos, coops and luxury apartments.
Overall Manhattan market of Condo and Coops
CNBC cites Miller Samuel Appraisers and the Elliman Report, the authority on New York City market stats. Number of sales was down 17 percent compared to last year and average sales price is now $2.1 million, down 5 percent from last year. Reasons for the overall market slump is the new tax law which decreases deductions for primary residence buyers, large inventory of new developments and 40 percent decrease in foreign buyer pool.
When one reads the Miller Samuel/Elliman report, we find that what the media does not mention are:
(i) Compared to Q1, sales volume was up 21 percent
(ii) Average sales price of $2.1 million was up 8 percent from Q1
(iii) Average price per square foot of $1,733 was up 2.1 percent from Q1
The above are important because it indicates whether we are improving from the slow buyer’s market. The starter studio market remains very tight with bidding wars making up 14.3 percent.
It is the high end new development and luxury markets that are suffering, where sales volume came down 37 percent and 17 percent. Multi-million dollar apartments, anything above $5 million, are slashing prices by the millions. The sub $1.5 million segment of studios and one bedrooms are doing quite well.
Manhattan Q2 Condo Market
Specific to the condominium market, while metrics were down compared to last year, they are also up since Q1 (perhaps signaling a turning point?)
(i) Sales volume was up 24 percent from Q1
(ii) Average price of $2.97 million was up 11 percent from Q1
(iii) Price per square foot of $2,115 was up 6.3 percent from Q1
(iv) Median price of $1.65 million was up 1.3 percent from Q1
Buyer’s Market
This is absolutely a buyer’s market. The negativity presented by the media is a bonus to buyers. We can already see signs of a turning point from the comparison of Q2 vs Q1 data. Question is how long will it take before a turning point is reported in the media, by which time it would not be as good for buyers anymore.
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