In anticipation of the Spring 2016 market we analyzed the first half of 2015 across all submarkets. The Spring market is historically the strongest season of the year for residential real estate sales in Manhattan.
Due to a market shift toward new development (a large number of new developments launched for sales in the first half of 2015), the number of resale condo sales declined by 9% from the same time period last year. Inventory did increase in the second quarter, up to 2,222 units – a 14% increase year-over-year. However, inventory levels are still near record lows. With little to no restrictions on ownership, the condo market is open to everyone including foreign buyers, investors, and non-primary residents. This market is not as affected as much by overpricing as the co-op market, as there is a higher demand and a larger pool of ready, willing, and able buyers.
Upper West Side
There was a higher number of sales of studios and one and two bedroom categories in the first half of the year, which may have contributed to a 7% decrease in average sales prices since last year’s second quarter ($2.254M in Q2 2015 and $2.419 in Q2 2014). Interestingly, in the first quarter, the average sales price was $3.009M, 27% above the Q1 2014. However, this significant gain in average price had a lot to do with multiple closings over $10M at Time Warner Center, Trump International, and 15 Central Park West – all of which are prized by foreign buyers! The average median price was $1.3M (over $400K more than co-ops).
Upper East Side
There were double-digit gains (23%) in the average price per square foot of resale condos on the East Side over last year, which was significantly higher than gains in the co-op market. The average price for a co-op was $1.902M and the average price of resale condo was $2.721M. ($1,181/SF and $1,821/SF on average respectively). The average median price of a resale condo was $1.5M (over $600K greater than co-ops).