NEW YORK, Jan. 3, 2018 /PRNewswire/ -- Stribling & Associates, a leading New York residential brokerage, today releases the fourth quarter Manhattan Market Report. The report, which covers the entire borough, showcased a market beset by uncertainty, as some areas performed well, while others suffered. The market was also affected by a glut of ultra-luxury inventory, and national issues, including new tax policy changes.
"Many buyers felt the market peaked in mid-2017, and prices have taken a hit since," said Garrett Derderian, Director of Data & Reporting at Stribling. "While this is true at a high level, we are still seeing signs of life in emerging areas, such as Midtown West and Upper Manhattan." Derderian cited upcoming developments in both markets that will be priced in the more affordable $1-3 million range, where buyers remain active.
The report noted that while the super-luxury market has seen price adjustments, resulting in a 5% drop in average sales price from this time last year, the bulk of the market remained flat in terms of pricing, or slightly up, year-over-year. "The biggest declines have come in the most expensive markets and price points, where a glut of new development afforded buyers more negotiating power, and the market responded. However, the median sales price of $1.05 million, while not a record, was up 5% from this time last year, highlighting strength in the middle market."
Derderian also pointed to total contract volume. "While there has been a decrease in prices, total contracts are up 7% from this time last year. Still, contracts signed above $10 million decreased by 21%." Accordingly, contract pricing, which reflects the last known asking price, did slip. "We saw the average price drop 8% to $2.1 million, and the median dip 3% to $1.2 million," Derderian observed.
As far as predictions for 2018, Derderian mentioned a possible rebound in pricing in the coming quarters. "We have yet to see several super-luxury projects initiate closings. When they start to come through, they will have an upward effect on pricing, even if it is not reflective of current market conditions."
Additionally, national issues are having an impact on the market. "Looking at the economics, the fourth quarter was plagued by the vagueness of the new tax policy, which for much of the quarter was not finalized. Now that the bill has been signed, consumers will be able to make a more informed decision. We anticipate more potential buyers coming off the sideline early next year."
Highlights from Stribling & Associates 4Q Manhattan Market Report:
Recorded Sales:
Contracts Signed:
Inventory:
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout three locations in Manhattan and one in Brooklyn. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.
Press Contact:
Ashley Murphy, Director of Public Relations
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646-675-5068
SOURCE Stribling & Associates
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