Co-op, condo sales show 'rapid acceleration'.
In the new millennium the Manhattan market has been characterized by the rapid acceleration of sales price averages at increases not seen in the past 10 years. Cooperative and condominium sales price averages jumped 24 percent and 40 percent, respectively, from the same period last year. The overall Manhattan average sales price increased 31 percent to $733,860 from the sameperiod last year and 29 percent from the previous quarter. This is the first time the overall average sales price has exceeded $700,000. Sales prices for cooperatives averaged $576,596 and condominiums averaged $952,761. The sales price aggregate - number of sales times average sales price - reached $1.7 billion, a 72 percent increase over the same period last year and 42 percent higher than last quarter. The Manhattan apartment market showed a 31 percent increase in sales volume to 2,313 units. Cooperative and condominium two-bedroom apartments showed the most gain in market share by realizing a 38 percent and 49 percent share as a percentage of the total units sold. Last year these categories were both at 33 percent. The number of days on market increased by 14 to an average of 107 days, which is still historically low. When there is equilibrium between supply and demand, a 120-150 day marketing time is usually the norm. The average discount from list price -- the difference between the last list price and final sales price that sellers are willing to accept--has continued to be at a low level. The average discount has dipped below 2 percent for the first time in over 10 years to 1.7 percent. This indicates that many apartments are selling at or abo ve list price. Since the second quarter usually experiences the hi hest average sales prices in a given year, it is anticipate the market will continue to see rising prices in the near term.
The average sales price of the co-op market showed a 24 percent increase to $576,596 from the same period last year and 13.4 percent over the previous quarter. This is a 63 percent increase over the same period three years ago. The price per room showed a similar gain of 23 percent to $125,525 from last year. The average sales price in each size category increased significantly with the exception of the 4 plus bedroom market. The category with the most change was the two-bedroom market. This may indicate that two-bedroom apartments have become the new "entry level" purchase category. Buyers are moving up from one-bedroom rentals to purchase two-bedroom apartments. Sales volume posted an increase of 35 percent from the same period last year to 1,346 units but a modest 6 percent decline from the previous quarter. The average days on market experienced a 13 percent decline to 99 days and the average listing discount declined 55 percent from 5.5 percent to 2.4 percent from the same period last year. Given market ing times of less than 100 days and minimal listing discounts, it is anticipated that prices will continue to rise through the next quarter.
Luxury Co-op Market
This market segment showed modest improvement in most categories. There was an 8.5 percent increase in average sales price from the previous year to $1,586,842. The average sales price is 46 percent higher than the same period three years ago. The sales price average this quarter is about one third lower than the previous two quarters. This is attributable to the small sample size and several high priced sales last year rather than as an indicator of a significant trend. At 116 transactions, this sub-market represents 9 percent of the overall co operative market for this quarter. The average price per room posted a 12.9 per. cent increase to $246,570. The average listing discount declined 60.8 percent to 2.9 percent from 7.3 percent last year. This is the third consecutive quarter the discount was less than 3 percent. The average number of days to market a luxury cooperative apartment increased to 144 days. Historically this market segment experiences longer marketing times than the overall cooperative market. The luxury cooperative market category is defined as two, three and four-bedroom apartments located on Park Avenue, Fifth Avenue and CPW. Since this is a sub-market of the overall co-op market, the luxury co-op data set is also included within the Co-op Market statistics.
The condominium market this quarter showed more improvement than the coop and luxury co-op markets. In the previous quarterly report, it was speculated that the average sales price could exceed $700,000 this period. This projection now appears conservative since the average sales price showed a 40 percent increase to $952,761 from the same period last year and is 37 percent higher than the previous quarter. The average sales price this quarter is 127 percent above the same quarter in 1997. In other words, the average sales price has effectively doubled in three years. Limited supply is evidenced by the average listing discount, which fell to 0.7 percent. This is the first time the average listing discount has fallen below 1 percent since it has been tracked in this study. Sales volume increased 26 percent from the same period last year to 967 units. The demand/supply imbalance is expected to continue over the next several quarters. It will be several quarters before it is clear whether the average sales pric e increase this quarter was an aberration or the beginning of a new price level for this category.
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|Title Annotation:||in New York City|
|Publication:||Real Estate Weekly|
|Article Type:||Brief Article|
|Date:||May 24, 2000|
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