As reported in Virtual Strategy Magazine, TOWN Residential has released The Aggregate, which summarizes the state of the New York City real estate market for that quarter. 2015 closed with a continuation of sluggish sales. In recent years, average sale prices for Manhattan have risen by 5.2%, reaching a sticker price of $1,976,660. Median prices in the borough rose as well, by as much as 16%, climbing above the previous year to reach $1,150,000.
Founder and CEO of TOWN Residential, Andrew Heiberger broke down the numbers with some common sense perspective. He stated that while new development is attracting more buyers than older properties, the increase in price has been lifted thanks to buyers acquiring prized properties during the autumn lull. This, however, isn’t expected to continue on into 2016. Sellers have stabilized their price expectations away from the peak at the end of last year, back to the soft numbers typically seen between late summer and early autumn.
Wendy Maitland, TOWN’s President of Sales, was quick to point out that there are still sales taking place that are priced at higher values than normal, contributing to percentage gains. However, were one to look at the thousands of units for sale, including townhouses, condos and co-ops, they’d find that the inventory, at present, suggests a balanced market which provides buyers with a more fair environment in which to find their property.
Should this trend of a calming market holds for the 2016 buying year, more agency is lent to buyers looking for property rather than leaving them out of certain areas of the city do to inflated prices. However, the high prices in the recent past has made for cautious buyers, reluctant to enter the market, which, ironically, contributed to rising prices. Thanks to an abundance of information available to all through the Internet, buyers can feel empowered and knowledgeable about the market, which may make them apprehensive all over again.
This issue of The Aggregate is compiled from sales across asset classes from October until the end of 2015. These sales are from the Manhattan markets, as reported to the New York City Department of Finance.