When Realtors and investors first see the reports released on April 1, 2016, the news seems to be positive. The median price for a condominium in Manhattan rose 17 percent over April 1, 2015, to $1.1 million median price. Driving those prices up, however, according to an article in Crains is new condo development. Developers and Realtors need to study the reports in more depth to understand the full picture.
Douglas Elliman and the Realtors at TOWN Residential say that buyers and sellers must break the condo market into three different segments. Most of the business of TOWN Residential is in luxury condos which are those units demanding the top 10 percent of all sales. Despite many new units entering the market, sales of these condos was up just 8 percent. In fact, some developers chose to not list there new units at this time causing a 44 percent decline in active listings. While the median price for new developments rose over 60 percent, most of these contracts were actually agreed on more than a year ago when construction was just beginning.
The Realtors at TOWN Residential stress that they have an advantage in selling NYC apartments for sale units as they have an established office right in Manhattan. They also understand that Manhattan buyers are very different than buyers in the suburbs and are equipped to deal with these buyers and sellers where security may be a primary concern.
The largest group of sales during the first quarter of 2016 were for units that were already constructed and are priced between $500,000 and $1 million. Near the very end of the quarter, the average unit sold for $950,000 which is an increase of 7 percent over a year ago.
According to the Realtors at TOWN Residential, this is very good news for those who are interested in selling their existing units throughout the remainder of 2016. Prices may continue to go up throughout the rest of the year. The Realtors at TOWN Residential have over five years of experience in selling these units.