Stribling & Associates Releases First Quarter 2018 Manhattan Sales Report

NEW YORK, April 3, 2018 /PRNewswire/ -- Stribling & Associates, a leading New York residential brokerage, today releases the first quarter Manhattan Market Report. The report, the only to cover sales, contracts, and active inventory in the same level of detail across the borough, highlighted dramatic price fluctuations across all submarkets, price points, and unit types.

"Sales and contract prices were down throughout most of Manhattan compared to one year ago, largely in the condo market," said Garrett Derderian, Director of Data & Reporting at Stribling. "The biggest sale price fluctuations were for larger unit types, and in markets that saw prices surge over the past several years, primarily due to new development."

Derderian cited the Downtown submarket and the Financial District/Battery Park City area as prime examples of the slowdown, where there were no large-scale developments to initiate closings this quarter. "In past quarters, one or two buildings with a substantial number of closings pushed the median, average, and PPSF prices higher than they otherwise would have been. Now, absent the wave of high-profile development closings, we are seeing a more realistic picture of market prices."

The report also put a strong emphasis on contract activity, which provides the most insight into current trends. "While contract activity was down in the first two months of the quarter, March saw a 12% increase in signings over this time last year," Derderian informed.

The impact of new development contracts was apparent, as the Upper West Side bucked the borough-wide trend of condo price decreases. "Several high-profile successful developments on the Upper West Side resulted in the median contract price rising 40% to $2.3 million and the average price increasing 33% to $3.8 million." At 250 West 81^st Street, a Robert AM Stern building marketed by Stribling, there were 13 publicly reported contracts signed above $5 million in the first quarter, three of which were above $10 million.

Derderian also pointed to co-op activity, which remained robust in the first quarter, "Contract activity for co-ops saw healthy increases in the first quarter. While often seen as a more affordable option, we saw larger units achieve higher prices than in previous quarters." On the Upper East Side, a market rich with co-ops at all price points, the median price grew by 30% to $1.3 million and the average jumped 15% to just over $2 million.

Several local and global economic influences also played a role in the first quarter. "Locally, we had the implementation of the new tax policy, a 3,000-point swing in the stock market, and mortgage rates rising. Globally, we saw new tariffs, concerns over trade wars, and politically uncertainties in the EU and Asia. These external forces effect real estate buying patterns," Derderian observed.

As to a look ahead, Derderian offered the following: "This was the first 1Q since 2011 where the $500K-1 million price bracket increased market share year-over-year. At the same time, it was the first 1Q since 2011 where both the $3-5 and $5-10 million brackets decreased share. The $1-3 million bracket share is also at its highest 1Q level-to-date. Much of this is a result of price adjustments, as sellers move to meet the demand in the market."

Highlights from Stribling & Associates 1Q Manhattan Market Report:

• Median sales price was $1,100,000, down 1.3% year-over-year
• Average sales price was $2,029,685, down 8.3% year-over-year
• Average price per square foot was $1,490, down 6% year-over-year
• Average days on market was 106
• There are 6.8 months of supply, up from 6.6 last year
• 32% of inventory was priced above $3 million
• Market-wide average discount from initial ask was 6%

Recorded Sales:

• There were 2,008 recorded sales to date, an 11% decrease from one year ago
• Co-ops made up the largest share of closings, with 54%
• Condos totaled 44% of all deals
• Condos were the most expensive, with an average PPSF of $1,734
• 1BR units captured 39% of all sales
• 4+BRs, with 5% sales, had the highest average PPSF of $2,030
• Downtown captured the greatest share of closings, with 30%, and was the most expensive market with an average PPSF of $1,797
• FiDi/BPC condos saw the biggest declines, with the median price down 20% and average price down 19%
• Upper East Side co-ops had a median price increase of 14% and average price rise of 25%

Contracts Signed:

• Total contracts signed decreased 6% to 2,405
• 1BRs made up 36% of all contracts signed
• All condo bedroom types saw an average PPSF decline
• 4+BR co-ops saw the biggest improvements in pricing with the median up 21% and average up 13%
• Downtown captured the most contracts signed, with 32%
• Midtown West and FiDi/BPC saw the least number of contracts, both at 4%
• Downtown averaged the highest PPSF, $1,844
• The Upper East Side had the largest apartments at 1,765 square feet
• Upper West Side condos saw the greatest price appreciation, with the median up 40% and average up 33%
• Upper East Side co-ops saw a median price improvement of 30% and average price increase of 15%

Inventory:

• There were 6,612 units on the market at the end of 1Q18
• Condo units made up the largest share of inventory, with 52%
• Condo units had an average PPSF of $2,131
• Co-op units were the most affordable, with an average PPSF of $1,291
• 1BRs and 2BRs made up 29% of inventory each
• The $1-3M bracket totaled 38% of inventory
• There was more inventory priced above $10M (7%) than below $500K (6%)
• Midtown West condos had a the only median price increase, up 2%
• All submarket average prices decreased for condos
• Upper East Side co-ops saw the biggest median price decline, down 11%, but remained the most expensive co-op market
• Upper Manhattan co-ops saw a median price increase of 12% and average price increase of 9%

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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SOURCE Stribling & Associates