It is already May if you can believe it. Not quite mid year, but a good time to check in and see how the real estate market is doing. News reports these days seem to say the market is moving laterally. So is it a good time to buy? Are properties bursting with value in Manhattan, ripe for the picking? Interest rates have inched up a bit and prices remain flat, but how about the overall market performance in New York? The following is a summary of the 2011 Quarter 1 report from Prudential Douglas Elliman.
Manhattan Market Overview
There were more sales in the first quarter of 2011 than in any first quarter in 3 years or since the credit crunch in 2008. There were 2,394 sales in the quarter, 0.4% more than 2,384 in the same period a year ago and 4.3% more than 2,295 in the prior quarter. The pending sales index indicated a 10.1% increase from the prior quarter, but activity was 14.2% lower than the same period a year ago. Market share for new development sales slipped to 14.5% of all sales down from 16.6% during the same period a year ago.Median sales price for co-ops and condos slipped 9.9% to $728,071 from same period last year. Price per square foot decreased to 1.3% for same period.
Listing inventory fell 5.3% to its lowest first quarter total in 3 years. The number of days it took to sell a property fell beneath the ten year average of 132 to 127 days.
Co-op sales jumped 28.7% to 1430 from 1111 Q1 2010. Sellers took advantage of positive media reports on co-op sales and the spring market, as inventory increased 5%. The median sales price fell 6.2% to $642,500 from $685,000 Q1 2010. It took 9 additional days on the average to sell a co-op this year. The average was 119 days. The difference between asking and sales price declined.
Condo sales dipped by 24.3% from Q1 2010. However, listing inventory fell 14.5%, to its second lowest level in 5 years. Price per square foot increased 5.4% to $1,216 from $1,154 last year Q1. It took 140 days to sell a condo, 5 days longer than Q1 2010. Sales price was 7.7% less than asking.
High End Homes
The median sales price for the luxury market adversely adjusted by 13.8% to $3,950,000. Price per square foot increased 1% to $1,899. Active inventory fell 31.8% when compared to Q1 2010. It took 128 days to sell a luxury home, this is two months faster than Q1 2010.
Performance
6.8% of all sales exceeded the listed price. A property listed at market value sold 43 days quicker than a higher priced comparable property.
The time it takes to sell an active listing was reduced by 50 days as sellers adjusted their expectations to realistic selling prices.
If you would like a more detailed 2011 Quarter 1 report, please email me and I will send you a PDF version.
