Today we're providing you with a market report for what you can expect in Q3, 2018. We're getting a bit more technical this time and will be covering some key market snapshots to give you a sense of what's happening in your market place right here in NYC.
#1. Let's start with some important statistics for August
264 recorded sales with an average price of $2.85 for condos and 1.3 for co-ops. The most expensive closing in August was PH-S at 160 Leroy, a new construction condominium.
#2. Supply was up to an over 6 year high in Manhattan in June of 2018
At one point there was over 7200 apartments on the market for sale in Manhattan. That number has dropped dramatically to around 5500 apartments. On the one hand, its great to see less supply as that always means a higher chance of apartments being absorbed but also, there are still a ton of units left to sell. For context, around the turn of 2013/2014 inventory was around 3000 apartments.
#3. Luxury supply has steadily been declining over the last few months
Why is this important? The luxury market is usually the best indicator as to where the rest of the market will follow. It’s the first segment of the market to decline when the market is stumbling and the first to rebound when the market is healthy.
#4. And yet, there are big discounts being cut on luxury homes
Across the US there have been over $1bb in price cuts across 500 listings in Q2 alone.
$5. Monthly contract activity has been steadily better than 2017 since June of 2018
This could mean the market is slowly picking back up as more transactions are being consummated.
All in all there is a lot of market adapting going on. For sellers, they have to accept the fact that aspirational pricing is now unrealistic and so you see price cuts. As for buyers, they are monitoring the market for price drops and only jumping in when they feel the home has hit the right price. But the combination of those two things are leading to sales which is why we are seeing activity. I would say it’s more of the same for now and this shift doesn’t have to mean a dramatic correct but rather a smoother adjustment to a more balanced market.