Monday, May 18, 2009
April 2009 Manhattan Market Snapshot
The number of signed contracts for both condominiums and co-ops increased in April from March, but continued to show price declines in most categories from a year ago. Inventory appears to be showing signs of stabilizing due as the New York City Winter/Spring market winds down and the new development pipeline slows to a trickle. Buyers took advantage of the market conditions, scooping up deals at significant price reductions from a year ago. I'll have a new post on negotiability soon, but for now, here's the April 2009 snapshot of the Manhattan apartment market.
condominum market snapshotManhattan condominiums showed a quite significant 12% increase in deals moving to contract in April from March; yet sales remained well below last year's levels. Sellers are getting realistic about how to deal with the realities of the buyers' market as the increase in deals was coupled with a -10% decrease in median price from March of 2009; that's -22% from a year earlier. Average prices have dropped 16% from a year ago. There was an increase in the average sale price and price per square foot due to several high-priced luxury property deals in April from March. This is a positive sign, as more expensive properties have been generally sluggish recently, and the luxury market is widely considered a leading indicator of the NYC market. Studio apartments experienced the largest year-over-year decrease in price per square foot, falling 27% since last year. On average condos sold in 178 days in April, almost two months less than in March 2009; contributing to the first decrease in available property inventory for sale since December 2008 down 3%.
co-op market snapshotSigned contracts for Manhattan cooperative apartments increased 4% in Aprill from March 2009. The co-op median price was unchanged from the previous month of March, but -18% below prices a year earlier. The average price per square foot fell overall, declining -13% from March and 21% from a year ago. One bedroom apartments showed the largest decline in average price per square foot, down 22% from April 2008. Inventory of co-ops increased by 1% from March, to just over 5,300 units for sale.
manhattan total inventoryManhattan listed available inventory decreased slightly from its peak in First Quarter 2009,and is now just below 12,300 units. This number does not include “shadow”, or unlisted but unsold, new development units. Available inventory remains at near record highs and has increased 49% since First Quarter 2007. However, an uptick in sales over the last few months, plus a steep drop in the number of new developments coming to market, may be causing inventory to stabilize.
contracts signed by price categoryProperties less than $1 million were the dominant sales category. In April 2009, 72% of the signed contracts were under $1 million, while a year ago only 49% were. In the same period, sales over $3 million fell from 12% to only 4% of total sales.