2nd Quarter Manhattan Real Estate Market Data

I’m back from vacation today and once again, my week off was insanely busy.  The summer market has indeed heated up again and here is the Prudential Douglas Elliman press release of 2nd quarter 2007 residential real estate statistics:

The Manhattan residential real estate market continues to be characterized by falling inventory, rising prices and a record number of sales in contrast to the national housing market.

– The number of sales increased 104% this quarter to 3,939 units as compared to the 1,934 units sold in the prior year quarter.

– Listing inventory dropped 31.5% to 5,237 units from the prior year quarter total of 7,640 units, which had been the highest level recorded in more than ten years.

– Days on market was 117 days this quarter, 4 weeks faster than the same period last year.

– Listing discount was 2.2%, down from 3.5% during the same period last year.

Price levels were generally up this quarter, with the greatest price gains seen in larger apartments, namely 3-bedroom and 4-bedroom units with a 17.6% and 36.2% gain respectively over the same period last year.

-The median sales price increased 1.7% to a record $895,000 over the prior year quarter result of $880,000 (7.2% above prior quarter result of $835,000).

-The average price per square foot increased 5.2% to a record $1,139 over the prior year quarter result of $1,083 (6.4% above the prior quarter result of $1,070).

-The average sales price decreased 3.8% to $1,333,316 over the prior year quarter record result of $1,386,193 (3.3% above the prior quarter result of $1,290,391).

Co-op Market

-The median sales price of a co-op this quarter was $695,000, down 3.7% from the prior year quarter but up 3% from the prior quarter. Average price per square foot and average sales price showed similar patterns.

-Inventory levels for co-ops fell 39.6% to 2,481 units as compared to the prior year quarter total of 4,105 units.

Condo Market

-The median sales price of a condo this quarter was $1,040,000 this quarter, up 5.1% from last year at this time and up 5% from the prior quarter. Average price per square foot and average sales price showed similar patterns.

-Inventory levels for condos totaled 2,756 units, down 22% from the prior year quarter total of 3,535 units. New development is estimated to be 34.9% of condo inventory this quarter.

Luxury Market (upper 10% of all co-op and condo sales)

-The median sales price of a luxury apartment this quarter was $3,600,000 this quarter, down 10% from the record $4,000,000 median sales price set in the prior year quarter last year at this time but up 5.1% from the prior quarter. Average price per square foot and median sales price also showed declines from the prior year quarter. However since this segment of the market is defined as a percentage of the total market, the declines reflected a wider range of included sales due to the surge in the overall number of sales. The 3-bedroom and 4-bedroom markets are more reflective of the high end market this quarter.

Loft Market (co-op and condo sales)

-The median sales price of a loft apartment this quarter was a record $1,650,000 this quarter, up 10% from last year at this time and up 1.2% from the prior quarter. Average price per square foot and average sales price showed 6.5% and 10% gains respectively from the prior year quarter.

The combo of stable demand and decreasing supply is fueling this active summer market.  Properties that are priced appropriately continue to be snapped up quickly and those who are "testing the market" with unrealistic asking prices will continue to wait for a buyer.  Today’s buyer is more patient and savvy than any I’ve seen in 15 years.