3Q 2016 Manhattan Residential Market Report

Once again, luxury new development closings dominated the Manhattan apartment market in the third quarter, keeping the average price above $2 million for the third consecutive quarter. Led by 432 Park, which featured an $88 million closing, new development prices averaged a record $4,394,721. It is important to remember that new development closings provide an outdated view of the market, as their average contract signed date was 9/2/15.

The average resale price was basically unchanged from the previous quarter, but 5% higher than a year ago. Smaller apartments continue to be the strength of the resale market, as their low supply helped drive the median price to a record $960,000. Limited supply at the lower end of the market, combined with overpricing at the high end led to 14% fewer closings than in 2015’s third quarter.

While there has been an increase in negotiability over the past year, high-end properties still need further price adjustments. The upcoming election has already impacted demand, as buyers wait for the outcome in November, further increasing the need to price appropriately.

The full version of the report can be found here