Saturday, February 10, 2007
the corcoran report: fourth quarter 2006
This is my special edition of the corcoran report. It is a comprehensive view of the Manhattan marketplace in the last quarter of 2006 which is analyzed and compared with data from a year earlier. I'm pleased to present it here for download, along with some commentary about the state of the Manhattan market that's posted after the "jump". It is also the first corcoran report to carry the new title of Vice President near my name, since I was promoted last Thursday.
download the corcoran report (1.1 mb) »
here are my introductory notes:
Highlights: The last quarter of 2006 was overall, a market place which trended upward. Average sale price was up 8% and the median sale price was up 11% over the same period last year. The bubble we were told might be coming never popped. However, gains were modest and we did see some price declines in particular neighborhoods, property types, and sizes. It’s a mixed bag that’s outlined inside in greater detail.
On the supply side: The continuing stream of new developments that are coming to market have helped to curb the enthusiasm of the runaway boom of a few years ago. With a reported 28,258 units either being built or planned, they will continue to have an effect through 2008. Builders have reacted to this by setting more sober price targets, or deciding to shift gears and build commercial properties instead.
On the demand side: There was a distinct bounce in volume with a 27% increase in the number of deals in the fourth quarter compared to a year earlier. As we begin 2007, the foot traffic at open houses is brisk as reported on my blog. The amount of time homes are on the market before a contract is signed is also showing evidence of shortening. The amount of deals in my office doubled in January. This is widely believed to be in part, the effect of record setting bonuses paid to financial services professionals entering the marketplace. The attraction of NYC homes remains strong with overseas investors as well as the owner-occupants who compromise the vast majority of Manhattan homeowners.
On balance: Far from a bubble, we are experiencing a very healthy marketplace, just off its record pace.It is unlikely that one would be able to buy an apartment and flip it a year later a profit anymore; but buyers have come to realize that the sky is not falling either. They are back out shopping and finding it to be a refreshing change, with a selection of choice resale properties and new developments. Sellers with expectations grounded in solid data and the proper guidance, will do well too.
On your side: Please call me to discuss how your home in particular, might do in today’s real estate market. I’d be pleased to provide a detailed Market Analysis and answer any questions about this report that you may have.
see the corcoran report: third quarter 2006 »
see other reports and guides on corcoran.com »