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August 2020 Manhattan $5M+ Report

August 2020 Manhattan $5M+ Report

August 2020: Manhattan’s Luxury Market Holds Steady

This August, $5M+ sales were nearly level with last month, active listings rose quickly, and pricing cooled as result of fewer very high-price deals.

  • Sales, while lower than last year, were nearly level with July. August saw 23 sales over $5M, a 51% annual decline. The market is still rebounding from very low levels earlier this year, so the annual decline is unsurprising. More importantly, sales fell by just one from July, suggesting the $5M+ market has stabilized for now.
  • Active listings continued to climb. As seen last month, active listings, which are usually lowest in August, instead increased by 7% from last month and 11% from last August to 1,001 listings.
  • Days on market remains high, but was lower than last month. With buyers returning, days on market rose by its slowest pace in six months, and decreased by 50 days on average versus July. Seven apartments signed in under 90 days, on par with last year.
  • Prices moderated versus last year. At $2,431, average price per square foot fell amid a drop in the share of sales in prime locations and for units on high-floors with quality water, park or city views.

Click here to view the report.

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Micro Lens on the Summer Market – 7th Edition

Micro Lens on the Summer Market – 7th Edition

While the Upper West Side had 7 fewer contacts signed under $4M than the previous week, the Upper East Side had 5 more contracts signed. These last few weeks of summer will be likely less active simply because of the time of the year, however since there is more clarity around schools, we could be pleasantly surprised. Markets typically improve with varying degrees of certainty. There were 3 contracts signed OVER $4M on the Upper East & West Sides, not unexpected for this time of year. 941 Park-2/3C asking $6.95M, 200 WEA-12G asking $4.495M & 25 CPW-16I asking $4.37M. Keep an eye out for our fall market preview in the first weeks of September as we analyze market conditions & get closer to more accurate pricing w/ late summer – early fall closings. 

We are happy to give you more detailed information on this data. Please reach out to Deanna at DEK@corcoran.com

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Move Safe Certified with HomeLight

Move Safe™ Certified

We’re proud to share that we’re Move Safe Certified with HomeLight! Our team is using the best tools and practices including meeting with clients virtually, practicing safety protocol for showings, and using an e-sign platform for the transfer and signature of documents. We’re here to help buyers and sellers navigate through these challenging times.

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Micro Lens on the Summer Market – 6th Edition

Micro Lens on the Summer Market – 6th Edition

There were 47 contracts signed under $4M on the Upper East & West Sides last week over 40 the previous week. Notably, there were 8 contracts signed over $2M from zero the previous week; 7 of which were on the UWS. An increase week over week in August is a good sign as new inventory will come on in September. Last week, Governor Cuomo announced that all school districts in NY State can open based on the data but there will be things that do not make it a typical fall school season, such as remote vs in-school learning or a hybrid of the two. That being said, certainty will trigger sales as many people were paralyzed to act with an uncertain future.

The luxury market was not as active uptown with only one contract signed at 390 West End Avenue, 11G (The Apthorp) asking $6.5M. The other 5 contracts over $4M signed in the city were all downtown.

We are happy to give you more detailed information on this data. Please reach out to Deanna at DEK@corcoran.com

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Micro Lens on the Summer Market – 5th Edition

Micro Lens on the Summer Market – 5th Edition

There were a total of 40 contracts signed last week under $4M on both the Upper East & West Sides; only 2 were over $2M. August should be interesting as historically it is not very active month as many people are away and it is very hot. However, this month could prove to be different as final decisions will be made on schools re-opening and there is likely deals to be had prior to September when new listings will likely come on the market.

There were 18 contracts signed under $4M last week on the UWS which is an increase from the previous week of 12. The UES was pretty consistent relative to the previous week with 22 contracts signed (20 the previous week) and with only 2 between $2M and $4M. There were only 2 contracts signed last week OVER $4M on the UES and UWS; one at 60 RSB and one at 817 Fifth.

We are happy to give you more detailed information on this data. Please reach out to Deanna at DEK@corcoran.com

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Micro Lens on the Summer Market – 4th Edition

Micro Lens on the Summer Market – 4th Edition

There were less contracts signed under $4M on the Upper West and East Sides last week than the previous week which had 17 on the UWS and 29 on the UES. Only 3 contracts were signed last week between $2M and $4M.

It was a big week for contracts in all of Manhattan OVER $4M with 13 apartments and 2 townhouses. Out of the 13 apartments, 8 of them were on either the UWS or UES.

We are happy to give you more detailed information on the this data. Please reach out to Deanna at DEK@corcoran.com 

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Micro Lens on the Summer Market – 3rd Edition

Micro Lens on the Summer Market – 3rd Edition

There were 46 contracts signed under $4M on the Upper West and East Sides this past week and nearly 80% of these were between $500K and $2M. This is an increase from the previous weeks that had only approximately 20 contracts per week since we entered Phase 2. There were only 3 contracts above $2M in both neighborhoods. We do think this is the price point that is likelier to move in the summer and especially this summer as most buyers in the higher end are still away from the city or are considering their priorities while we wait for a directive on opening schools.  Co-ops prevailed on the Upper West Side this week but it was pretty even on the Upper East Side between co-op and condo sales.

We are happy to give you more detailed information on the properties in each category.

Please contact us at DEK@corcoran.com or 212.937.7011.

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Micro Lens on the Summer Market – 2nd Edition

Micro Lens on the Summer Market – 2nd Edition

There were only 7 contracts signed in the last 7 days on the Upper West Side & 14 on the Upper East Side. The majority were in the $500-$1M category & there were 5 total over $2M. We should see increases over the next few weeks as the anticipated release of pent-up demand from a 3 month pause on showings is inevitable. We are bringing you these numbers weekly so we can all understand the state of our NYC market in real time! Please do not hesitate to reach out for more specifics on these sales.

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Micro Lens on the Summer Market – 1st Edition

Micro Lens on the Summer Market – 1st Edition

Our first look at the summer market overviews the last two weeks since Phase 2 began on Monday June 22, when real estate officially re-opened for business. Since we are all entering unchartered territory this summer and are unsure how the market will fare in the initial re-opening, we decided to take a micro approach to the data by sharing all signed contracts weekly under $4M on the Upper West and East Sides so we can all better understand real time activity. We are happy to give you more detailed information in each category!

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Manhattan Market FAQ

The entire Deanna Kory Team sincerely hopes that you, your family and friends are in good health and staying safe.  It is now more than a month since our great City has shut down and for many of us, the sudden shift overtook every aspect of our lives. As one of the epicenters in the U.S., we New Yorkers have been especially affected. That said, New Yorkers are perhaps some of the most resilient people on earth and no doubt we will work hard to rebuild our lives in the city we are proud to call home.

Some weeks ago, New York State declared that the work of real estate agents is essential only when “legally necessary” and, as such, only virtual showings are allowed.  However, as of mid-March most New York City’s residential buildings closed to non-residents, so for the most part all showings stopped. This shutdown will continue until the City reopens and buildings allow us to enter apartments and homes once again.

Many people who own or wish to buy a home are wondering where the market is now and what the future holds. There is currently limited data, but we have culled the information that may help you understand what is happening in the Manhattan real estate market and have provided answers to questions which we have been asked on a regular basis, by both buyers and sellers. 

  • Was the market getting stronger before the shutdown? Yes, it was improving. In the Fourth Quarter 2019, contracts signed rose for the second consecutive quarter for the first time since 2015. November and December were particularly strong with December contracts up nearly 15% from the previous year. Volume of contracts signed continued to increase in early 2020: by mid-March closings and contracts signed were up 10% versus the same period in 2019. Lower pricing, record-low mortgage rates and what was a strong economy helped unlock pent-up demand.
  • Have contracts been signed since mid-March? Yes, some contracts are being signed, in total 260 since March 23rd in all of Manhattan. But sales volume is down between 74-100% depending on the price point, size and location. Note: So far, nearly all contracts that have been signed were on properties which buyers had visited prior to the shutdown.  See chart below.
  • Are people buying properties without visiting them? In resales, the number of contracts signed by people who did not personally visit the apartment is quite low. However, in new development sales (where many people buy based on viewing plans and images in normal times), the numbers vary from 10-20% of the sales per Corcoran Sunshine. Please note that the contracts for new development have been signed since mid-March, have primarily been below $4M.
     
  • What is happening to prices? What about the future? So far it is hard to tell. Recent closings help determine the most current pricing. At the start of the shutdown, very few closings transpired as it took some time to figure out how to manage a virtual closing.  Now that some closings are occurring, they are showing on average – a minimal decline in prices. Appraisers and experts predict a 3-5% decline in lower end sales and 5-10% decline in the higher end.
  • What types of properties are going into contract now? The majority of apartments going into contract are below $2.5M.
  • What about closings? As stated above, closings are in fact taking place, some with great difficulty. Condo closings tend to be easier. Issues include: buyers do not want to close if they cannot move into the apartment, co-op closings are very hard to complete because they require the managing agent at the closing and some banks are unwilling to perform a virtual closing.
  • Are people renegotiating prices? So far, our research has shown that some buyers are renegotiating prices prior to closing. Those who are not renegotiating often believe that if they plan to own the apartment for at least 5-7 years, anything lost will be made up. There are others who need to sell their current home and feel that they must make up their loss by renegotiating their purchase price or are requiring more time to close.
  • What do you think the future holds? While it is anyone’s guess, I am hearing both positive and negative sentiments. It is much easier to deal with absolutes rather than the uncertainty we are currently experiencing. While it may take some time, indications are that by mid-summer the City will begin to reopen and a more active buying and selling season in New York City real estate will begin.

 
Time and again, New Yorkers have proven themselves to be tough and that drive will bring the City back and it will thrive again.  New York City has its own unique spirit which is why our home is such a special place!

If you have any additional questions, please do not hesitate to reach out to me and/or our exceptional team members. We closely monitor the market and regularly offer buyers and sellers the benefit of our long experience having worked through a myriad of cycles.

Please stay safe and keep your spirit strong!

Sincerely,
Deanna, Ileana, Jane, Cindy, Lynn and Stacey

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