Confidence Returning to Manhattan Market
New York, NY, October 1, 2009: According to the third quarter Manhattan residential market report released today by Brown Harris Stevens Residential Sales, the effects of the recession on Manhattan have lessened. The average apartment price of $1,274,563 was down 13% from the same period a year ago. This was, however, a slight improvement over last quarter’s 24% annual decline. The number of sales recorded also showed the signs of confidence returning to the market. In the second quarter of 2009, closings were down 53%, and in the third quarter of this year they were down just 25%.
The average price for cooperative apartments during the third quarter of 2009 was $934,400, down 22% from a year ago. At $1,685,855, the average condominium price overall was up slightly from a year ago. This number is impacted by an increase in the number of larger condominiums sold during the quarter.
“We have seen a dramatic increase in the number of new deals in the last few months as buyers perceive greater value in these reduced prices,” said Hall F. Willkie president of Brown Harris Stevens Residential Sales. “Now that confidence is returning to the marketplace, stock prices are substantially up since their March low and job losses are slowing, many who have been waiting on the sidelines can see an end in sight to the difficult economic times, and they are moving forward. Because Manhattan has a surprisingly limited inventory of owned homes —estimated at approximately two hundred and fifty-five thousand— I have a great deal of confidence in the strength of the New York real estate market.”
- Apartments sold in the third quarter of 2009 were on the market for an average of 128 days,
39% longer than a year ago. - Sellers received 95.1% of the last asking price for their apartments, down from last year’s average of 97.2%.
- With just one third quarter sale over $20 million on the East Side recorded so far,
the average price for East Side apartments with 3 or more bedrooms fell 42% from a year ago. - On the West Side, the average price per square foot for a condo declined just 10% over the past year.
- Condominiums in new developments continue to play a substantial but diminishing role Downtown;
they accounted for 54% of closings in the neighborhood this quarter.
Access the full report by clicking here.
