2017 First Quarter Manhattan Real Estate Market Report can be summed up by saying that the sales and prices have picked up as sellers have become more realistic about pricing and uncertainty stemming from the 2016 election has waned. New development sales have continued to slow (which are typically much higher priced than resales) but resale prices are hitting record highs as pent-up demand from the second half of 2016 is finally meeting up with sellers’ more reasonable expectation..
From Greg Heym, Brown Harris Stevens’ Chief Economist:
The Manhattan apartment market rebounded in the first quarter, as both prices and the number of sales rose for resale apartments compared to a year ago. The average resale price rose 5% to $1,561,911—its highest level since the second quarter of 2015. A new record was set for the resale median price, which at $955,000 was 3% higher than 2016’s first quarter. There were 1,795 resale closings reported in the first quarter, which was 5% more than a year ago.
Including new developments, the average price for all apartments reached a new record of $2,174,105. The median price for all apartments of $1,150,000 was also a record, and 8% higher than in the prior quarter. A 17% decline in new development closings brought the number of sales for all types of apartments down 1% from the first quarter of 2016.
After slowing dramatically leading up to the presidential election, the Manhattan apartment market has started to pick up momentum. With much of the uncertainty now gone and sellers adjusting to the realities of the market, first-quarter market data was better than expected. While the data show a decline in new development closings, many of the deals are signed months or years in advance, so they are not always indicative of current market conditions.
The full version of the report can be found at the link below:
http://media.bhsusa.com/pdf/BHS1Q17_Market_Report.pdf
March Economic Report says employment in NYC is up 1.5% in March:
http://media.bhsusa.com/pdf/bhs_heym_report_03_2017.pdf
Manhattan Absorption Rate is up 25% in March over 2016:
http://media.bhsusa.com/pdf/BHS-Absorption-Report-march-2017.pdf