Showing posts with label market reports. Show all posts
Showing posts with label market reports. Show all posts
Friday, February 12, 2010
Monday, February 8, 2010
Apartment prices show annual decline for the first time in 13 years
The aughts saw more price appreciation than the 1980s or 1990s; number of sales drop for past two years.
Market reports released last week depict the spectacular rise of home prices over the past decade, but also the abrupt arrival of the real estate slump in Manhattan.
In 2009, Manhattan co-ops and condos saw year-over-year declines for the first time since 1996. The average 2009 apartment sold for $1.39 million, down 12.5 percent from the previous year. The median price dropped 11 percent to $850,000 from 2008, while the average price per square foot sank 14.2 percent to $1,073.
Other areas of the country have seen real estate activity and prices decline gradually over the past few years, but the Manhattan real estate market was still booming until the Lehman Brothers collapse in the fall of 2008. In fact, Manhattan prices set new records in 2008. That year, the average sale price of a Manhattan apartment reached a new ever high of $1.59 million, while the median was $955,000 and the price per square foot was $1,251, according to the report.
The number of sales sank 27.9 percent to 7,430 in 2009, from 10,299 in 2008 and 13,430 in 2007.
In 2009, the median sales price of a Manhattan co-op or condo surged 113 percent from $399,000 in 2000, reports say, while the average sales price climbed 96 percent from $710,778. In 2000, the average price per square foot in Manhattan was $522, about half of what it was in 2009.
The aughts saw more price appreciation than either of the two prior decades. The average sale price increased 96 percent throughout 2000s, but it grew only 26 percent in the 1990s.
One reason for the dramatic price increase was the mid-2000's construction boom of new condominiums. In 2000, co-ops represented 60 percent of the units that changed hands, but in 2009, that percentage had shrunk to 46 percent, while condos made up 54 percent. Co-ops still represent about three quarters of the total housing stock in Manhattan.
Because of the new construction, Manhattan's housing stock is more luxurious than it was a decade ago. Easy credit and speculation also helped fuel rising price in the last decade, even in the face of 9/11 and two recessions.
In addition, New York City itself was transformed during the late 1990s and 2000s as crime rates fell. Manhattan's enhanced reputation for safety has made it more desirable to foreign buyers, who in turn helped drive up real estate prices. The run-up in prices can also be attributed to the expansion of Wall Street during the 2000s.
Areas that saw the most price appreciation over the past decade were what brokers called "fringe" neighborhoods like Harlem. For example, the average sales price of a co-op or condo in Upper Manhattan (north of Central Park) in the year 2000 was $170,332, a figure that shot up 204 percent to $519,169 by 2009.
More established neighborhoods also saw prices rise, but not to the same extent. For example, the average price of an Upper East Side co-op rose 110.2 percent to $1.49 million in 2009 from $710,299 in 2000. Condo prices in the same neighborhood grew 100 percent to $2.11 million from $1.06 million in 2000.
An anomaly in the report was Battery Park City, which saw its prices quadruple as new condos were built with much larger units than had been found in the area in the past.
Meanwhile, townhouses saw a slow-but-steady appreciation over the decade, though their prices are also down from 2008.
The average sales price of Manhattan townhouse (defined as a one- to five-family home, delivered vacant) was $5.01 million, down 32 percent from a record $7.37 million in 2008 and up 51.6 percent since 2000. The median sales price was $3.4 million in 2009, down 31.2 percent from a record $4.99 million in 2008, and up 37.2 percent from 2000.
Contact Alfred Real Estate Today
Market reports released last week depict the spectacular rise of home prices over the past decade, but also the abrupt arrival of the real estate slump in Manhattan.
In 2009, Manhattan co-ops and condos saw year-over-year declines for the first time since 1996. The average 2009 apartment sold for $1.39 million, down 12.5 percent from the previous year. The median price dropped 11 percent to $850,000 from 2008, while the average price per square foot sank 14.2 percent to $1,073.
Other areas of the country have seen real estate activity and prices decline gradually over the past few years, but the Manhattan real estate market was still booming until the Lehman Brothers collapse in the fall of 2008. In fact, Manhattan prices set new records in 2008. That year, the average sale price of a Manhattan apartment reached a new ever high of $1.59 million, while the median was $955,000 and the price per square foot was $1,251, according to the report.
The number of sales sank 27.9 percent to 7,430 in 2009, from 10,299 in 2008 and 13,430 in 2007.
In 2009, the median sales price of a Manhattan co-op or condo surged 113 percent from $399,000 in 2000, reports say, while the average sales price climbed 96 percent from $710,778. In 2000, the average price per square foot in Manhattan was $522, about half of what it was in 2009.
The aughts saw more price appreciation than either of the two prior decades. The average sale price increased 96 percent throughout 2000s, but it grew only 26 percent in the 1990s.
One reason for the dramatic price increase was the mid-2000's construction boom of new condominiums. In 2000, co-ops represented 60 percent of the units that changed hands, but in 2009, that percentage had shrunk to 46 percent, while condos made up 54 percent. Co-ops still represent about three quarters of the total housing stock in Manhattan.
Because of the new construction, Manhattan's housing stock is more luxurious than it was a decade ago. Easy credit and speculation also helped fuel rising price in the last decade, even in the face of 9/11 and two recessions.
In addition, New York City itself was transformed during the late 1990s and 2000s as crime rates fell. Manhattan's enhanced reputation for safety has made it more desirable to foreign buyers, who in turn helped drive up real estate prices. The run-up in prices can also be attributed to the expansion of Wall Street during the 2000s.
Areas that saw the most price appreciation over the past decade were what brokers called "fringe" neighborhoods like Harlem. For example, the average sales price of a co-op or condo in Upper Manhattan (north of Central Park) in the year 2000 was $170,332, a figure that shot up 204 percent to $519,169 by 2009.
More established neighborhoods also saw prices rise, but not to the same extent. For example, the average price of an Upper East Side co-op rose 110.2 percent to $1.49 million in 2009 from $710,299 in 2000. Condo prices in the same neighborhood grew 100 percent to $2.11 million from $1.06 million in 2000.
An anomaly in the report was Battery Park City, which saw its prices quadruple as new condos were built with much larger units than had been found in the area in the past.
Meanwhile, townhouses saw a slow-but-steady appreciation over the decade, though their prices are also down from 2008.
The average sales price of Manhattan townhouse (defined as a one- to five-family home, delivered vacant) was $5.01 million, down 32 percent from a record $7.37 million in 2008 and up 51.6 percent since 2000. The median sales price was $3.4 million in 2009, down 31.2 percent from a record $4.99 million in 2008, and up 37.2 percent from 2000.
Contact Alfred Real Estate Today
Thursday, December 10, 2009
Buyer Competition on the Rise
Over the past year or so, buyers looking to invest in Manhattan real estate have had the upper hand over sellers. With transactions virtually frozen in the wake of last year's collapse of Lehman Brothers, sellers grew alarmed, dropping prices and offering incentives to tempt purchasers.
Now, for the first time since the collapse of the market, many market experts are speculating that this heyday for buyers may be nearing its end—or that at least their advantage is shrinking.
More buyers—especially those who hesitated to buy during the financial crisis—are now searching for bargain prices as the stock market recovers and prices drop.
“Brokers are starting to notice more competition,” says Dan Babush, founder of Alfred Real Estate. “Now that prices are at an all time low, buyers who had been patient are stepping back into the game.”
Upper West Side broker Babush has noticed a large number of buyers looking for "classic six" apartments priced under $1.5 million. The sudden interest in these properties has resulted in multiple bids for this type of property. In response, sellers of these well-priced apartments no longer have to negotiate as much.
Another sign that buyers might be losing the upper hand is home seekers have started to complain about lack of inventory. The demand for Manhattan homes is extremely high, and the inventory cannot match it. Trying to find homes in the most desirable neighborhoods has become very competitive.
There's one major stipulation to all of this: Unlike in the boom, overpriced homes simply don't sell. Appropriate pricing brings the best results, and with the market still offering some of the lowest prices in decades, apartments priced within that range generally sell in a matter of weeks.
The new development market is also starting to see inventory drop as the supply of new projects dries up. These developments have gotten a boost in sales from international buyers who are showing a renewed interest in the city, prompted by low prices.
As a result of all these factors, homeowners who had avoided putting their homes on the market are having a change of heart. Brokers are being contacted by sellers who are contemplating selling their homes sometime in the near future. With open houses being packed the past month or so, sellers are gaining confidence that there will be an interest in their home.
Thursday, October 29, 2009
Market Reports Show Good News for Potential Renters
According to third quarter market reports released earlier this month, those looking to rent in Manhattan still have the upper hand. Rents in Manhattan remain low and flat this winter, except in trendier areas like SoHo and TriBeCa. Vacancies in Manhattan rose 1.72 percent this month, the most sizable increase in six months. Inventory is also up—giving potential renters their choice of prime Manhattan apartments in desirable neighborhoods.
Tips for Renters
Tips for Renters
- A walk in the park. Gramercy Park non–doorman two–bedroom units have hit their lowest price points this month. These units fell 5.31% to $3,416. And while many of these do not come with a key to the park, they do come complete with easy access to virtually all of Manhattan’s other neighborhoods.
- Hang out on the hill. Non–doorman and doorman studio units in Murray Hill are both reporting their lowest price points in months. Non–doorman units fell 2.35% this month to $1,775, while doorman units fell 2.84% to $2,112. So whether you’re a new hire looking for your first apartment in Manhattan or a long–time resident looking for a fresh start, there has never been a better time to check out Murray Hill.
- Head to Harlem. Harlem is known for great deals, but the already low priced non–doorman two–bedrooms have dropped further this month to their all time low of $2,032.
Thursday, October 15, 2009
NEWS UPDATE: Prices Stabilize, Sales Increase for Homes in NYC
According to REBNY, Citywide Home Prices Up 4% From Last Quarter, Sales Volume Increased 35%
Average home prices in New York City climbed in the third quarter of 2009 compared to the previous quarter, reversing the trend that began last year. This is a sign that the market could be leveling off. Prices were down 14 percent to $670,000 from this time last year. However, for the second quarter in a row, Manhattan home prices declined, dropping five percent to $1,233,000 compared to the second quarter of 2009.
Average home sales prices (which includes cooperatives, condominiums and one-to-three-family dwellings) increased by six percent in Brooklyn to $534,000 and by three percent in the Bronx to $367,000 compared to the second quarter of 2009. Average prices in Queens increased by one percent to $406,000 and Staten Island home prices declined by one percent to $382,000 compared to last quarter.
The report found that citywide sales volume increased 35 percent to 9,734 compared to last quarter. Manhattan sales volume increased 59 percent to 2,840 while sales volume in Brooklyn increased 27 percent to 2,102. "
While we see the market slowly coming back to life, REBNY President Steven Spinola says that in order to be sure of the market recovery the trend must continue for at least two more quarters. But, nevertheless, sales volumes noted in this third quarter report show that it was a busy summer for real estate transactions—a reliable sign that the market is on the rebound.
For a more in depth look at third quarter market reports, click here.
Average home prices in New York City climbed in the third quarter of 2009 compared to the previous quarter, reversing the trend that began last year. This is a sign that the market could be leveling off. Prices were down 14 percent to $670,000 from this time last year. However, for the second quarter in a row, Manhattan home prices declined, dropping five percent to $1,233,000 compared to the second quarter of 2009.
Average home sales prices (which includes cooperatives, condominiums and one-to-three-family dwellings) increased by six percent in Brooklyn to $534,000 and by three percent in the Bronx to $367,000 compared to the second quarter of 2009. Average prices in Queens increased by one percent to $406,000 and Staten Island home prices declined by one percent to $382,000 compared to last quarter.The report found that citywide sales volume increased 35 percent to 9,734 compared to last quarter. Manhattan sales volume increased 59 percent to 2,840 while sales volume in Brooklyn increased 27 percent to 2,102. "
While we see the market slowly coming back to life, REBNY President Steven Spinola says that in order to be sure of the market recovery the trend must continue for at least two more quarters. But, nevertheless, sales volumes noted in this third quarter report show that it was a busy summer for real estate transactions—a reliable sign that the market is on the rebound.
For a more in depth look at third quarter market reports, click here.
Thursday, October 8, 2009
Third Quarter Market Reports are Out: The Free Fall is Over
After months of hyping up the possibility of a Manhattan market rebound, the moment we have all been waiting for has arrived: the release of the third quarter market reports. So, the question remains: do we have something to be happy about? The reports show that the free-fall of market prices is over, and the number of sales is way up from the previous quarter. Here, some “key metrics” from three brokerage firms describing their individual sales from the last quarter:
Average sale price
- Elliman: $1.323M Down 10% from last year, up 0.8% from last quarter
- Corcoran: $1.282M Down 16% from last year, down 11% from last quarter
- Halstead/Brown Harris Stevens: $1.274 million Down 13% from last year, flat over last quarter
- Elliman: $850,000 Down 8.4% from last year, up 1.7% from last quarter
- Corcoran: $799,000 Down 18% from last year, down 4% from last quarter
- Halstead/BHS: $781,000 Down 14% from last year, down 1.7% from last quarter
- Elliman: Down 16% from last year, up 45.6% from last quarter
- Corcoran: Down 38% from last year, up 16% from last quarter
- Halstead/BHS: Down 25% from last year
For a more in-depth look at third quarter market data, click here.
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