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SOURCE Douglas Elliman Real Estate
Average Sales Prices Fell Below $2M for First Time in Seven Quarters; Median Sales Prices for Resales Edged Higher for Third Consecutive Quarter; Sales Cooled as Buyers Awaited Outcome of New Tax Laws
NEW YORK, Jan. 3, 2018 /PRNewswire/ -- Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide, today releases the Q4 2017 Manhattan Market Report for sales in the borough. The report, which includes Northern Manhattan (defined as the area north of West 116th Street, Central Park, and East 96th Street), speaks to the overall story of 2017, with the median sales price edging higher for a third consecutive quarter, a tight resale inventory -- particularly in entry and mid-markets, and a slowdown in closed sales, likely due to the pending tax bill as consumers waited to see how it would impact housing.
"Median sales prices showed three straight quarters of growth, led by re-sales," said Steven James, CEO of New York City, Douglas Elliman. "It is important to note that the average price of Manhattan homes fell below $2M for the first time in seven quarters. This can be attributed to final moments of the new development contract pipeline where deals signed several years ago have closed once construction was completed. Amid all the changes and uncertainty since Labor Day, the market is seeing modest median price growth, bidding wars remaining above average and resale inventory still fairly tight overall -- especially in the entry and mid-markets."
The Northern Manhattan market showed a declining supply of both apartments and townhouses, with a slowing of sales due to lack of supply. Price trends in Northern Manhattan remained mixed. Additionally, like the rest of the borough to the south, housing sales slowed due to similar hesitation about the tax bill.
"I'm not forecasting the price impact of the tax bill yet, but I am saying it has more of an effect on the higher end and it will take buyers and sellers a while to sort it out over the next year or two," added Jonathan Miller of Miller Samuel Inc., the author of the report. "I expect that in the near future, buyers will come in lower on offers initially and sellers will resist, a repeat of what we have been seeing. However, I wouldn't be surprised to see a sales pickup in 1Q18 as fall's pent-up demand is released."
MANHATTAN SALES MARKET HIGHLIGHTS
- First time in 7 quarters the average sales price fell below $2 million as legacy contract pipeline clears
- Median sales price edged higher for third consecutive quarter, driven by re-sales
- Sales activity for the Manhattan housing market was at the lowest fourth quarter total in six years
- Pace of the fall market cooled as market participants awaited the housing-related terms of the new federal tax law
- Buyers continued to hold firm, forcing sellers to meet them on price
- Smaller apartments continued to see more bidding wars than larger apartments
- 90% of sales at or above $5 million were "all cash"
- New development inventory expanded annually for sixth consecutive month, but growth rate cooled
Key Trend Metrics (compared to same year ago period)
- Median sales price rose 1% to $1,060,000
- Price per square foot declined 20.6% to $1,609
- Average sales price decreased 10.6% to $1,897,503
- Number of sales declined 12.3% to 2,514
- Listing inventory edged up 1.1% to 5,451
- Days on market rose 3.2% to 97 days
- Listing discount was 5.4%, up from 5.3%
- Absorption rate was 6.5 months, up from 5.6 months
NORTHERN MANHATTAN SALES MARKET HIGHLIGHTS
- Apartment median sales price edged higher year over year
- Listing inventory for all property types declined sharply
- Townhouse sales expanded as apartment sales declined
- Market pace remained brisk for all property types
Key Trend Metrics (compared to same year ago period)
Co-ops & Condos
- Median sales price rose 0.7% to $579,000
- Price per square foot slipped 2.1% to $803
- Average sales price rose 0.4% to $673,725
- Number of sales fell 28.2% to 199
- Listing inventory declined 9.1% to 280
- Median sales price declined 4.5% to $2,125,000
- Price per square foot rose 9.9% to $710
- Average sales price increased 9.8% to $2,219,817
- Number of sales increased 8.3% to 26
- Listing inventory declined 36.4% to 49
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the fourth largest residential real estate company nationwide. With more than 7,000 agents, the company operates approximately 110 offices in Manhattan, Brooklyn, Queens, New Jersey, Long Island, the Hamptons & North Fork, Westchester, Greenwich, South Florida, Colorado and California. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing; Manhattan's largest residential property manager, Douglas Elliman Property Management with over 250 buildings; and DE Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
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