NYC Luxury Market: Condo Sales Slip As Co-Ops Make A Comeback
The report covers a decade of $5M+ transactions in Manhattan and Brooklyn
NEW YORK, Aug. 14, 2018 /PRNewswire/ -- Stribling & Associates, a premier luxury New York residential brokerage, today releases the Mid-Year 2018 Luxury Report. The report covers sales, contracts and active inventory, priced $5M and above, in both Manhattan and Brooklyn.
"The first half of 2018 saw a 31% decline in luxury sales from the same period one year ago," said Garrett Derderian, Director of Data & Reporting at Stribling & Associates. The decline was concentrated in the condo market, which saw a 39% decrease in total sales. "This was the first time in the past six years the condo market saw a reduction in sales," Derderian observed. Markedly, the luxury co-op market saw a 10% increase in sales, after recording yearly sales declines in both 2016 and 2017.
Derderian went on the explain why co-ops, which have seen considerably less demand in recent years, saw a sudden uptick in sales: "Over the past several years, buyers' predilections shifted towards downtown new development condos. As a result, uptown co-op prices became considerably softer since sellers have been adjusting expectations. Now, with a flood of costly new construction condos on the market, there is a perception those prices are overinflated. Co-ops, which have already adjusted their prices, have become more attractive and oftentimes offer more space for the same dollar amount."
Still, the number of luxury condo sales, at 303 deals, was significantly higher than co-op sales, which recorded 103. Both property types measured yearly price increases. For condos, the median price increased 3% to $7,537,550, and the average price was up 2% to $9,929,390. Meanwhile, co-ops saw a median price increase of 4% to $7,000,000, and an average price rise of 5% to $9,382,169.
The report also highlights that while the Downtown market continues to be a top choice for condo buyers, with 52% of all deals, the Brooklyn market is also attracting well-heeled purchasers. "The luxury market in Brooklyn is an area we continue to watch closely," said Derderian. "Even though prices were down from this time last year, we still see a steady stream of high-priced sales in the borough," he stated.
Indeed, the median condo sales price in Brooklyn fell 12% to $5,900,000, while the average price dropped 10% to $6,719,670. The average price per square foot also fell 10% to $1,901. Still, Brooklyn captured more luxury deals then the Financial District/Battery Park City, a market experiencing a tremendous construction boom, where only 4 sales were recorded.
For co-ops, the Upper East Side remained the most active market: 54% of all co-op sales were recorded in the neighborhood. Here, both the median and average prices surged. The median price grew 16% to $7,525,000 and the average price jumped 14% to $9,810,262. Derderian accredited the growth to both the renewed interest in Uptown markets, as well as the size of the units, which measured the largest of any submarket.
When looking at the nature of the market overall, Kirk Henckels, Director of Stribling Private Brokerage, put it best: "It is very clear that this market is enduring what is the kindest, gentlest major price correction in memory. It is hard to recall a real estate market incurring such an adjustment without some relatively catastrophic triggering event. This is simply a market that is adjusting itself to chronic overpricing relative to buyers' perception of value." He also added the luxury market still remains above the last peak in 2008.
Highlights from Stribling & Associates Mid-Year 2018 Luxury Report:
- Median sales price was $7,600,000
- Average sales price was $9,898,736
- Average price per square foot was $2,631
- Average days on market was 247
- There are 15.4 months of supply, up from 13.9 last year
- 67% of condo inventory was priced between $5-10M
- 69% of co-op inventory was priced between $5-10M
Recorded Condo Sales:
- There were 303 condo sales, down 39% from 500 in 2017
- The median sale price was $7,537,550, up 3% year-over-year
- The average sale price was $9,929,390, up 2% year-over-year
- The average PPSF was down 3% to $2,866
- 71% of sales were priced between $5-10M
- 52% of sales were located downtown
- Brooklyn registered 2% of luxury sales
- Midtown recorded the highest average price, at $14.54M
- The largest properties, at 4,467 square feet, were located in FiDi/BPC
Recorded Co-op Sales:
- There were 103 co-ops sales, a 10% increase from 94 one year ago
- The median sale price was $7,000,000, up 4% year-over-year
- The average sale price was $9,382,169, up 5% year-over-year
- 70% of sales were priced between $5-10M
- 54% of sales were located on the Upper East Side
- 24% were located on the Upper West Side
- The Upper West Side recorded the highest average price, at $9.99M
- The largest properties, at 3,951 square feet, were located on the Upper East Side
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout five locations in Manhattan, Brooklyn, and Long Island City. 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
[email protected]
646-675-5068
SOURCE Stribling & Associates
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