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Manhattan Monthly Market Report | May 2017

Manhattan Monthly Market Snapshot| May 2017

Market Wide Summary 

May was an improved month for condo and co-op sales in Manhattan, as contracts signed of both reached their second highest point in the last year. Inventory remained virtually unchanged versus last year, with just a 1% rise overall.

Inventory grew in the condo market, but fell for co-ops. Every price metric for both condos and co-ops saw annual increases with some significant gains. Listings spent more time on the market for both the condos and co-ops, as days on market rose by 10% and 28%, respectively. Negotiability was still present market wide as the average sale was made slightly below ask.

Condominium Market Snapshot

 After April’s double digit decline in contracts signed, May experienced a slight increase in condo contract activity of 4% year over-year. Average price and median price both reached record highs in May, rising by 30% and 29%, respectively. This rise was largely attributable to a handful of high-priced transactions occurred over $5M, including a penthouse at 56 Leonard.

Marketwide, average price per square foot increased by 14%, with all bedroom types increasing except for studios. The trend of annual increases in days on market continued in May, as the average number of days increased 10% versus last year, the 16th consecutive month of annual increases. Negotiability on the other hand is similar to this time last year, as buyers continue to expect discounts, especially at the high end.

Cooperative Market Snapshot 

Co-op sales saw a slight rise in number of transactions over the last year, with a 2% increase. This rise in sales, and lack of new units coming to market, led to a 1% decline in inventory. For the second consecutive month, all price metrics increased, with average and median sale price increasing 9% and 10%, respectively.

Average days on market grew 28% from last year, largely as a result of sales of more expensive inventory that had lingered on the market. While discounts are common, they remain minimal within the co-op market, with sale price only 1% below asking price, on average.

Manhattan Total Listings

In May inventory was up only 1% annually and month-over-month, but this was enough to reach its highest level since October 2012. This increase has been almost totally caused by a rise in condo inventory, as condos experienced their 21st consecutive month of year-over-year increases. Townhouse inventory on the other hand decreased 3%, despite only fi ve townhouse sales occurring in May.

Ask Versus Sale Price Comparison 

After a significant drop in sales made below ask in April, the share of sales below the asking price jumped back up to 59% in May, roughly in line with the past year. Negotiability remains common, with the majority of sales continuing to be made below ask, thought the trend appears to be a flattening, rather than a rise in the proportion of such deals. Sales made above ask also appear to be flattening, as every month since February has had nearly 20% of deals over the asking price.

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