Prices rose while sales numbers slipped for Manhattan condos and co-ops in the second quarter, according to the latest market report prepared by Miller Samuel Inc. for the Prudential Douglas Elliman real estate company.
The average sales price of Manhattan condos and co-ops jumped 6.6 percent from the first quarter to the second quarter, and rose 5.2 percent compared to second-quarter 2005, according to the Manhattan Market Overview report.
Sales dropped 3.5 percent from the first quarter to second quarter and slid 14.8 percent compared to second-quarter 2005.
“The second quarter is generally considered the most active period of the year, both in terms of price levels and the number of sales. Rising mortgage rates has eased demand, resulting in a combination of rising inventory and a lower number of sales. The number of sales declined to the lowest level for the same period in five years,” according to an announcement by Prudential Douglas Elliman.
A separate report, released today by residential real estate company Brown Harris Stevens, found that the average sale price for a Manhattan cooperative apartment during the second quarter was $1.26 million, up 7 percent from second-quarter 2005, while the average sale price for all Manhattan apartments fell 5 percent, to $1.21 million.
According to the Prudential Douglas Elliman report, sales for the second quarter were down 34.5 percent compared with the same quarter last year for the co-op segment of the market.
Other findings in that report:
- The average sales price reached a record $1.39 million for the quarter.
- The average price per square foot increased 11.6 percent to a record $1,083 over the prior-year quarter result of $970, and was 7.9 percent above previous quarter of $1,004.
- The median sales price increased 13.5 percent to $880,000 over the median of $775,000 in second-quarter 2005, and was 6.7 percent higher than first-quarter 2006.
- Listing inventory expanded 10.7 percent to a record 7,640 units from the previous quarter total of 6,904 units and is 53.9 percent above the 4,965 units available in the prior-year quarter.
- The number of days it takes to sell an apartment, which is a lagging indicator, was largely unchanged, expanded by six days to 144 days. It now takes 42 days longer on average to sell a property as compared to the same period last year.
- The overall sales decline was due to the drop in the number of co-ops sales, which more than offset the rising in the number of condo sales, according to the report. “This is the second consecutive quarter that condos have outsold co-ops, despite the three-fold number of co-ops over condos that comprise the housing stock.”
- Co-ops showed gains in overall prices due to increases in market share and prices at the upper end of the market while condos showed more modest gains due to the shift to smaller units.
- Negotiability remained limited but is weakening, with the listing discount rising slightly to 3.5 percent for the quarter, up from 2.8 percent last quarter and 1.6 percent for the same quarter last year quarter.
In the co-op market:
- The average price per square foot of a co-op increased 14.5 percent to a record $995 from $869 in the prior-year quarter. Both median sales price and average sales price also set records.
- Manhattan co-op sales dropped 10.8 percent in the second quarter compared to the first quarter, and fell 34.5 percent compared to second-quarter 2005.
- The median and average sales prices showed a significant increase in prices as compared to the previous quarter, largely due to a shift in the mix of apartments sold to larger units combined with price gains of those units. The average prices of studio and 1-bedroom apartments as well as their market share, fell from the previous quarter.
In the condo market:
- The average price per square foot of a condo increased 5.5 percent to a record $1,149 from $1,089 in the prior-year quarter.
- The median sales price also set a record this quarter but the average sale price fell as the market share of entry-level units surged 17 percent from the previous quarter, combined with rising prices of smaller units.
In the luxury market, which includes the upper 10 percent of all co-op and condo sales:
- High-end apartments set price records for price per square foot and median sales price. Average price per square foot exceeded $1,800 for the first time and the median sales price reached $4 million. The average sales price exceeded $5 million though dropped 3 percent compared to second-quarter 2005. “The increase in this sector was to be expected as a result of the record Wall Street bonus pay outs at the beginning of the year,” according to the company announcement.
- The average square footage of a luxury unit fell to 2,722 square feet in the second quarter, down 10.1 percent from the average of 3,027 square feet in second-quarter 2005.
In the loft market:
- Lofts represented 11.3 percent of all sales and 16.1 percent of the aggregate sales dollars in the current quarter, the highest market share for lofts in three years.
- The average size of a loft apartment this quarter was 1,688 square feet, down 3.6 percent from last quarter and part of a general trend since first-quarter 2005 when the average was 2,145 square feet.
Brown Harris Stevens also reported today:
- Prices rose sharply throughout the East Side, with a 36 percent increase in the average sale price for a two-bedroom apartment compared to the second quarter of 2005.
- The average price for a two-bedroom apartment on the West Side reached $1.56 million, up 20 percent compared to second-quarter 2005.
- The average price for studio apartments downtown was 19 percent higher than 2005’s comparable period, while the average price for downtown one-bedroom apartments was $700,000, or 10 percent higher than the second quarter of 2005.
- Loft prices averaged $1,005 per square foot in the second quarter, a 7 percent gain from second-quarter 2005.
The transaction data in the Brown Harris Stevens report is provided by ValuExchange and is based on 2,655 reported Manhattan apartment sales.
