I hope 2012 is off to a healthy and prosperous start for you. The end of January is already here and spring will be just around the corner soon enough. Of course, the weather feels like we're in March already. By the way, how are those resolutions going? Did you resolve to buy a house in New York City? Call me... I jest, but if you are an owner who wants to sell your apartment, the clock is ticking and there are things you should know about why listing before the spring market is a smart thing to do. In any event, read on for this month's ClosingTableNYC. For January, we report on the real estate activity from 2011.
We also have a new feature! You can view a short, two minute video version of ClosingTableNYC right here by clicking the ClosingTableNYC link. You can also watch from Facebook and Twitter on your PDA. It includes a brief wrap up of key 2011 numbers and a fun piece about pedicabs in Central Park. Check it out. ClosingTableNYC Video
The following is an abbreviated report written by Gregory Heym, Chief Economist for Terra Holdings, the parent company of Halstead Property. 
A sharp decline in condo sales brought the overall average and median Manhattan apartment sales price lower over the past year. The number of condo closings fell 24% from the fourth quarter of 2010, which meant condos accounted for only 40% of all apartment sales. A year ago, condos were 46% of sales, and since condos are generally more expensive than co-ops, a decline in their share of the market can bring the overall average apartment price lower.
At $1,391,745, the average price for a Manhattan apartment was 3% lower than during 2010’s fourth quarter, while the median price fell 7% to $785,000. However, looking at co-op and condo prices separately shows us that much of this decline was due to the lower percentage of condo sales.
The average co-op price of $1,149,203 in the fourth quarter was just 1% lower than a year ago, helped by an 18% increase in the average price for three-bedroom and larger units. For condos, the average price rose 4% over the past year to $1,825,728 despite the decline in closings, which were led by an 8% gain in the average price of studio apartments.
The economic and financial turmoil that began in the late summer led to fewer transactions than a year ago. Overall, there were 13% fewer closings than in the fourth quarter of 2010, when the threatened expiration of the Bush tax cuts led many high-end owners to sell before the year ended. While condo sales fell 24% during this time, co-op sales fell by just 4%.
Job growth slowed in both the U.S. and New York City in the second half of 2011. Through November, 49,300 jobs were added in NYC in 2011, down from 52,700 in the first 11 months of 2010. The city’s unemployment rate in November was 8.9%, the same level as the beginning of 2011. While there has been stagnation in hiring recently, New York’s recovery remains well ahead of schedule. This combined with a relatively low rate of available apartments has led the Manhattan market to continue to outperform the rest of the nation.
Gregory Hehm, Chief Economist, Terra HoldingsCome back next month and ClosingTable NYC will have a new video blog and will report on the latest in the Manhattan real estate market. Enjoy February.
