The average sales price of Manhattan homes fell below the $2 million mark for the first time in seven quarters as sales cooled amid tax reform concerns
The average sales price of Manhattan homes fell below the $2 million mark for the first time in seven quarters as sales cooled amid tax reform concerns.
A quarterly market report for the last three months of 2017 from Douglas Elliman Real Estate shows a continuation of the year’s trends; the median sales price edging higher, a tight resale inventory, , and a slowdown in closed sales.
"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.”
James added that with resale inventory remaining tight, bidding wars were above average in Q4, 2017.
Inventory was up 1.1% in the quarter to 5,451. The median sales price was up 1% to $1,060,000 while the average sales price was down 10.6% to $1,897,503.
Northern Manhattan slows
The Northern Manhattan market also slowed by lack of supply and the potential impact of tax reforms.
Listing inventory was down 9.1% for condos and co-ops (280) while townhouse availability slumped 36.4% (49).
Median sales prices were $579,000 for condos/co-ops (up 0.7%) and $2,125,000 for townhouses. Average sales prices were $673,725 (down 0.4%) for condos/co-ops and $2,219,817 (down 9.8%) for townhouses.
"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."
A quarterly market report for the last three months of 2017 from Douglas Elliman Real Estate shows a continuation of the year’s trends; the median sales price edging higher, a tight resale inventory, , and a slowdown in closed sales.
"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.”
James added that with resale inventory remaining tight, bidding wars were above average in Q4, 2017.
Inventory was up 1.1% in the quarter to 5,451. The median sales price was up 1% to $1,060,000 while the average sales price was down 10.6% to $1,897,503.
Northern Manhattan slows
The Northern Manhattan market also slowed by lack of supply and the potential impact of tax reforms.
Listing inventory was down 9.1% for condos and co-ops (280) while townhouse availability slumped 36.4% (49).
Median sales prices were $579,000 for condos/co-ops (up 0.7%) and $2,125,000 for townhouses. Average sales prices were $673,725 (down 0.4%) for condos/co-ops and $2,219,817 (down 9.8%) for townhouses.
"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."
