The prices are boring, but the volume is exciting - 3,750 sales marketwide
This report uses market-wide data based on transactions that closed in the Third Quarter 2011 (July 1 through September 30) and compares it to closings that took place last quarter and during the same quarter one year ago. Closings typically occur eight to twelve weeks after a contract is signed; for that reason, the sales activity charted here trails actual market conditions.
With strong sales, lower inventory and steady price growth, the residential real estate market showed signs of continued improvement. Third Quarter 2011 recorded the highest number of transactions since Second Quarter 2008 – before the downturn. The number of market-wide sales increased 15% from Third Quarter 2010 and 6% from Second Quarter 2011.
The growth in sales was propelled by the strength of certain market segments, including studios and one-bedrooms borough-wide, Downtown resales and Upper West Side new developments. At over 8,750 listings, market-wide listed inventory declined 5% from both last quarter and one year ago.
This erosion in availability can be attributed to steadily declining supply in the new development market. The number of new listings declined throughout the first two months of the quarter but rose in September with the beginning of the Fall season.
Pricing market-wide continued to grow at a steady rate. While median price declined 2% from a year ago, average price per square foot grew 3% to $1,061. Compared to Second Quarter 2011, median price, at $854,750, grew 2% while average price per square foot rose slightly by 1%. Both resale and new development market pricing was higher over last quarter and last year. Despite diminishing inventory, the new development sector continues to attract significant demand. New development transactions accounted for 21% market-share this quarter, higher than Third Quarter 2010 when they accounted for 19%.
Closings in new developments are comprised of a steady stream of sales in properties opened prior to the downturn as well as a wave of sales in newly completed buildings which opened in the past year.
The market slowed briefly in early August, after a credit rating agency downgraded the nation's debt rating and the financial makets took a series of unpredictable swings.
For the complete comprehensive analysis of the Manhattan residential market download Manhattan Market Report 3-Q 2011
Looking ahead, there is much to be resolved concerning sovereign debt crises and market volatility affecting the global economy. Manhattan is an international city, offering a diverse range in residential product type and location.
For your exact needs, consult with me for front-line perspective and seasoned insight. Each market segment and neighborhood has it's own nuances. As always, I will continue to follow closely Manhattan's sales activity and trends in residential real estate, and would welcome the oportunity to answer any questions about this report, the market in general or any questions about buying or selling real estate in Manhattan.
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