Manhattan Luxury Sales Take a Hit While Sales Under $5 Million Are Up
Douglas Elliman Real Estate, the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume, today releases the Q4 2019 Market Reports for Manhattan and Northern Manhattan.
The number of sales in Manhattan fell annually for the eighth time in nine quarters, but only by a small percentage overall. There was a marked split this quarter between sales below $5 million, which actually rose since this time last year, and those at or above $5 million, which fell nearly 38 percent year-over-year. The median sales price was unchanged, and listing inventory was up.
“It truly was a tale of two cities as 2019 came to close, with the SALT and mansion taxes continuing to affect the higher end of the Manhattan sales market,” said Steven James, President and CEO of Douglas Elliman, New York City. “With so much more activity below the $5 million mark, it’s not surprising that the median sales price held steady this quarter. Inventory has been continuing to rise, so it will be interesting to see the impact it may have on luxury sales.”
In Northern Manhattan, the median sales price declined for the third time in four quarters. Falling prices resulted in higher sales, however, with the number expanding for the second time in the past three quarters. As in the overall Manhattan market, sales skewed toward the lower end.
“Prices were down in Northern Manhattan, and so we saw increased buyer activity, especially for smaller sales,” said Jonathan Miller, of Miller Samuel Inc., the author of the reports. “The same trend is also evident across Manhattan, with luxury buyers still sitting out of the market as lower end sales make more of an impact.”
MANHATTAN SALES MARKET HIGHLIGHTS
Overview
Co-ops & Condos
“Overall sales below the $5 million threshold edged higher while sales at or above the threshold fell sharply.”
- The number of sales fell annually for the eighth time in nine quarters
- Median sales price unchanged year over year as average sales price continued to decline
- The lowest overall share of quarterly cash buyers in five years of recording
- The hardest-hit segment in terms of sales has from $7 million to $10 million
- Four out of ten luxury sales were new development versus six out of ten three years ago
- The sharp gain in luxury listing inventory continued with resales contributing the most significant portion
- Smallest new development average square footage of a sale in seven years
- The third straight annual increase in new development sales market share but remained below decade quarterly average
Key Trend Metrics (compared to same year ago period)
- Median sales price was unchanged at $999,000
- Price per square foot declined 6.1% to $1,581
- Average sales price decreased 7.5% to $1,815,700
- Number of sales slipped 1.2% to 2,404
- Listing inventory rose 9% to 6,643
- Days on market 6.5% to 99 days
- Listing discount was 6.8%, up from 6.2%
- Months of supply was 8.3 months, 10.7% slower
NORTHERN MANHATTAN SALES MARKET HIGHLIGHTS
Overview
“Price trend indicators by property type continued to slide.”
Co-ops & Condos
- Median sales price declined year over year for the third time in four quarters
- The number of sales expanded annually for the second time in three quarters
Townhouses
- Price trend indicators and the number of sales declined from the year-ago quarter
- Listing inventory hasn’t shown a year over year decline in seven quarters
Key Trend Metrics (compared to same year ago period)
Co-ops & Condos
- Median sales price 5% to $558,750
- Price per square foot declined 5.4% to 767
- Average sales price fell 5.4% to $653,747
- Number of sales rose 5.5% to 212
- Listing inventory increased 22.4% to 366
Townhouses
- Median sales price decreased 9.2% to $1,850,000
- Price per square foot slipped 1.2% to $579
- Average sales price fell 3.7% to $1,977,752
- Number of sales was 21, down 4.5%
- Listing inventory rose 7.5% to 57
About Douglas Elliman Real Estate
Established in 1911, Douglas Elliman Real Estate is the largest brokerage in the New York Metropolitan area and the second largest independent residential real estate brokerage in the United States by sales volume. With more than 7,000 agents, the company operates approximately 120 offices in New York City, Long Island, The Hamptons, Westchester, Connecticut, New Jersey, Florida, California, Colorado, Massachusetts and Texas. Moreover, Douglas Elliman has a strategic global alliance with London-based Knight Frank Residential for business in the worldwide luxury markets spanning 60 countries and six continents. The company also controls a portfolio of real estate services including Douglas Elliman Development Marketing, Douglas Elliman Property Management and Douglas Elliman Commercial. For more information on Douglas Elliman as well as expert commentary on emerging trends in the real estate industry, please visit elliman.com.
