According to the Elliman Report, the 3,297 sales of luxury co-op and condo apartments in Manhattan in the Fourth Quarter of 2013 were the highest "in at least 25 year" and up 26.9 percent from the prior year quarter.
The report also noted that listing inventory fell 12.3 percent to a 14-year record low of 4,164 from the prior year total.
Condo median sales price climbed 14.2 percent over the past year to $1,320,000, a 25-year record, the report maintained, adding that "the time to sell an apartment fell by half as listing discount remained low" and "the average days on market was 95," about half the 177-day pace in the prior year quarter.
"The burst in sales activity," it continued, "was the remainder of momentum that began in the third quarter fueled by the May/June spike in mortgage rates as well as the release of pent-up demand culminating with the fiscal cliff event at the end of 2012. The absorption rate, the number of months to sell all inventory at the current pace of sales, was at a near record pace of 3.8 months."
The report noted, however, that "rising mortgage rates suggest it is unlikely the torrid pace of sales cannot be sustained," adding that "rising prices have already begun to pull in more re-sale supply but the recent sales surged simply overpowered new inventory entering the market."
"Co-op price indicators showed robust price gains in the lower half of the market yet the shift in the mix tempered overall price trends," the study said.
The Fourth Quarter 2013 "was the eighth consecutive quarter with double-digit year-over-year gains in signed contracts," Pamela Liebman, chief executive officer of Corcoran, noted, adding that it also the "twelfth quarter of year-over-year listing decline" and that "inventory is currently 54 percent lower than its peak of 12, 336 listings in the First Quarter of 2009."
"New development had a robust 32 percent increase in median price and a 19 percent increase in average price per foot," she continued, adding that "new developments launched after the downturn that are designed and priced at higher standard at now beginning closings, driving these dramatic price gains. The luxury new development market median price rose an incredible 72 percent year-over-year to $7.85 million. The average price per foot for luxury new development increased 34 percent year-over-year from $1,989 to $2,661. New development represented only 12 percent of closings but these sales were skewered towards the high price categories."
The Corcoran study found that "several premier East Side properties, such as 135 East 79th Street and 150 East 72nd Street, commenced closings during Fourth Quarter" and "these high-end new development sales primarily accounted for a surge in median price to $3,291 million, an increase of over 40 percent relative to both last quarter and last year," adding that "Average price per square foot of $1,891 was a 25 percent increase from a year ago and a 16 percent gain from last quarter."
The Brown Harris Stevens report found that "seller were able to get 98.4 percent of their last asking price, up from 96.2 percent in 2012's last quarter."
"The average price fell for two-bedroom and larger apartments on the East Side from a year ago, as luxury co-op sales declined," the report said, adding that "strength was shown in studio and one-bedroom apartments, whose average price rose 14 percent and 8 percent, respectively," according to the Brown Harris Stevens report.
"Except for three-bedroom and larger apartments, all other size categories on the West Side posted high average prices compared to the fourth quarter of 2012" and "gains were led by an 8 percent increase in two-bedrooms and a 7 percent increase in one-bedrooms," the report found.
"The downtown market," the study continued, "saw impressive gains in prices over the past year, helped by sales at Walker Tower, 241 Fifth Avenue and 18 Gramercy Park. This led to a sharp increase in the average price for two bedroom and larger apartments in this market" and "the strong new development activity is also reflected in the 22 percent increase in the average condo price per square foot over the past 12 months."
The report also noted that listing inventory fell 12.3 percent to a 14-year record low of 4,164 from the prior year total.
Condo median sales price climbed 14.2 percent over the past year to $1,320,000, a 25-year record, the report maintained, adding that "the time to sell an apartment fell by half as listing discount remained low" and "the average days on market was 95," about half the 177-day pace in the prior year quarter.
"The burst in sales activity," it continued, "was the remainder of momentum that began in the third quarter fueled by the May/June spike in mortgage rates as well as the release of pent-up demand culminating with the fiscal cliff event at the end of 2012. The absorption rate, the number of months to sell all inventory at the current pace of sales, was at a near record pace of 3.8 months."
The report noted, however, that "rising mortgage rates suggest it is unlikely the torrid pace of sales cannot be sustained," adding that "rising prices have already begun to pull in more re-sale supply but the recent sales surged simply overpowered new inventory entering the market."
"Co-op price indicators showed robust price gains in the lower half of the market yet the shift in the mix tempered overall price trends," the study said.
The Fourth Quarter 2013 "was the eighth consecutive quarter with double-digit year-over-year gains in signed contracts," Pamela Liebman, chief executive officer of Corcoran, noted, adding that it also the "twelfth quarter of year-over-year listing decline" and that "inventory is currently 54 percent lower than its peak of 12, 336 listings in the First Quarter of 2009."
"New development had a robust 32 percent increase in median price and a 19 percent increase in average price per foot," she continued, adding that "new developments launched after the downturn that are designed and priced at higher standard at now beginning closings, driving these dramatic price gains. The luxury new development market median price rose an incredible 72 percent year-over-year to $7.85 million. The average price per foot for luxury new development increased 34 percent year-over-year from $1,989 to $2,661. New development represented only 12 percent of closings but these sales were skewered towards the high price categories."
The Corcoran study found that "several premier East Side properties, such as 135 East 79th Street and 150 East 72nd Street, commenced closings during Fourth Quarter" and "these high-end new development sales primarily accounted for a surge in median price to $3,291 million, an increase of over 40 percent relative to both last quarter and last year," adding that "Average price per square foot of $1,891 was a 25 percent increase from a year ago and a 16 percent gain from last quarter."
The Brown Harris Stevens report found that "seller were able to get 98.4 percent of their last asking price, up from 96.2 percent in 2012's last quarter."
"The average price fell for two-bedroom and larger apartments on the East Side from a year ago, as luxury co-op sales declined," the report said, adding that "strength was shown in studio and one-bedroom apartments, whose average price rose 14 percent and 8 percent, respectively," according to the Brown Harris Stevens report.
"Except for three-bedroom and larger apartments, all other size categories on the West Side posted high average prices compared to the fourth quarter of 2012" and "gains were led by an 8 percent increase in two-bedrooms and a 7 percent increase in one-bedrooms," the report found.
"The downtown market," the study continued, "saw impressive gains in prices over the past year, helped by sales at Walker Tower, 241 Fifth Avenue and 18 Gramercy Park. This led to a sharp increase in the average price for two bedroom and larger apartments in this market" and "the strong new development activity is also reflected in the 22 percent increase in the average condo price per square foot over the past 12 months."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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