2016 New York Q4 Rutenberg Market Report
Fourth Quarter Market Report – 2016
Despite a 13% decline in the number of sales, the average Manhattan apartment price reached a record $2,110,556 in the fourth quarter. This figure was 9% higher than a year ago, and up slightly from the previous record set in 2016’s first quarter. The median apartment price of $1,075,000 was down 4% from 2015’s fourth quarter.
Cooperative Average Sales Price
Cooperative apartment prices averaged $1,242,916, a 3% decline over the past year. Only studio co-ops posted a higher average price than in the fourth quarter of 2015.
Condominium Average Sales Price
New developments continued to push condo prices to record highs in the fourth quarter. At $3,143,441, the average condo price was 22% higher than a year ago, and marked the second straight quarter this figure was over $3 million.
- Three-bedroom and larger condo prices averaged 27% more than a year ago, the biggest gain of any size category
New Developments - Average and Median Sales Price
The average new development price rose 51% over the past year, to a record $4,709,602. This marked the fourth consecutive month the average new development price set a record. Additionally, new development inventory jumped 33.7% to 1,047.
- Nine of the top 10 most expensive sales in the fourth quarter were in new developments, with six of those closings at 432 Park Avenue. However, these closings are not representative of the current market, as the average contract for new developments closed in the fourth quarter was signed a year ago.
- The surge in new-development sales in Manhattan, which began in the second half of 2015, is already easing and is likely to slow further in the first half of 2017.
Resale Coops and Condos
Median sales price for re-sales reflected 83.3% of all closings, and declined 6.3% year over year to $900,000, the second and largest such decline of the past four years. Overall listing inventory rose 6.9% to 5,393 from the year ago quarter.
Apartments sold during the fourth quarter spent an average of 88 days on the market, 10% longer than a year ago. Sellers received 98.0% of their last asking price, down from 98.7% in the fourth quarter of 2015. Resale inventory edged up 1.9% to 4,346 year over year.
- Co-op sales were down 12.3% through Dec. 19. The median price was up 5.4% to $775,000 compared with 2015, but was down 3% since the third quarter.
- Resales of older condominiums were down 7.6%, while the median price fell by 1.6% compared with 2015. Overall sales declined 6.1%.
In all, there were fewer contracts signed on co-ops listed for $4 million or more in the fourth quarter of 2016 than in any fourth quarter in the last five years.
As a result, inventory of unsold co-ops is piling up, and they are taking longer to sell. Total inventories jumped 20% in the fourth quarter compared with the same quarter in 2015. The weakness has led many sellers to cut asking prices by 10% to 15%, brokers said.
- The median price on larger, more expensive co-ops fell sharply. The median price of three-bedroom co-ops sold in the final three months of 2016 was $2.24 million, down 12% from the same period in 2015.
- Sale prices of co-ops with four or more bedrooms were down 13% to $4.81 million in the fourth quarter of 2016 from the same quarter in 2015. By contrast, the median price of condominiums with four or more bedrooms was up 24% to $8.3 million during the same period
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