The total number of properties sold citywide through mid-year was 818, up an impressive 24 percent from the 774 properties sold in the first half of 2009, according to a report today by Massey Knakal Realty Services.
Mid-year activity, however, it noted, also remained 70 percent below the 2,738 sales occurring in the first half of 2007, which was the peak of market activity.
Within the different market segments Massey Knakal tracks, Manhattan continues to be the best performing thus far in 2010. The 230 properties sold (occurring south of 96th Street on the east side and south of 110th Street on the west side) represent an 87 percent increase from the comparable period in 2009, but a 61 percent decrease from the first half of 2007, the most active half year.
The borough with the least activity was the Bronx in which there were only 92 properties sold in the first half of 2010, down 15 percent from mid-year 2009 and down 76 percent from the most active half year in 2007.
For dollar volume, the best performing area was Northern Manhattan which saw a 180 percent increase in activity from mid-year 2009 and a 51 percent increase from 1Q10. The Bronx was the weakest performer with $192,487,204 million of sales in mid-year 2010, down 4 percent from mid-year 2009 but still up 78 percent in 1Q10.
"Investment activity has increased dramatically from this time last year and based on the last six quarters of data, we can now point to the bottom of the market from an activity perspective," said Massey Knakal Chairman and Founding Partner Robert A. Knakal. "It is now clear that the summer of 2009 will be known as the bottom of sales activity, however, pricing varies from property type and borough," added Knakal.
"While the volume of sales has been impressive, we expect pricing to continue to vary widely across boroughs and product type. The overwhelming demand for quality product continues to outpace the supply and this dynamic will exert upward pressure on values, particularly in Manhattan. However, as the supply of distressed assets continues to climb, this addition to supply will exert downward pressure on value," said Mr. Knakal.
Mid-year activity, however, it noted, also remained 70 percent below the 2,738 sales occurring in the first half of 2007, which was the peak of market activity.
Within the different market segments Massey Knakal tracks, Manhattan continues to be the best performing thus far in 2010. The 230 properties sold (occurring south of 96th Street on the east side and south of 110th Street on the west side) represent an 87 percent increase from the comparable period in 2009, but a 61 percent decrease from the first half of 2007, the most active half year.
The borough with the least activity was the Bronx in which there were only 92 properties sold in the first half of 2010, down 15 percent from mid-year 2009 and down 76 percent from the most active half year in 2007.
For dollar volume, the best performing area was Northern Manhattan which saw a 180 percent increase in activity from mid-year 2009 and a 51 percent increase from 1Q10. The Bronx was the weakest performer with $192,487,204 million of sales in mid-year 2010, down 4 percent from mid-year 2009 but still up 78 percent in 1Q10.
"Investment activity has increased dramatically from this time last year and based on the last six quarters of data, we can now point to the bottom of the market from an activity perspective," said Massey Knakal Chairman and Founding Partner Robert A. Knakal. "It is now clear that the summer of 2009 will be known as the bottom of sales activity, however, pricing varies from property type and borough," added Knakal.
"While the volume of sales has been impressive, we expect pricing to continue to vary widely across boroughs and product type. The overwhelming demand for quality product continues to outpace the supply and this dynamic will exert upward pressure on values, particularly in Manhattan. However, as the supply of distressed assets continues to climb, this addition to supply will exert downward pressure on value," said Mr. Knakal.
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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