Why Manhattan Condos Are Achieving Record High Prices
- Feb 05, 2015
New York—According to StreetEasy Data, at the end of the final quarter for 2014, Manhattan condo prices reached a record high. These prices rose 8.4 percent in 2014, ending 2014 with 24 consecutive of months of price growth for the market.
Although growth reached an a record high, price growth is expected to slow in 2015, as the fourth quarter marks the slowest rate of quarterly appreciation since the first quarter of 2013. The average price for these properties jumped nearly 11 percent year-over-year to $942,000.
“For sidelined buyers wondering how much longer the market will continue to be constrained, relief may be on the horizon,” said StreetEasy data scientist Alan Lightfeldt. “Manhattan’s robust price growth amid anemic inventory is finally starting to come back down to Earth. The market will slow down for a much-needed breather in 2015 after last year’s Olympic sprint.”
Condo prices are expected to grow at 0.4 percent in January, and continue to appreciate. Throughout 2015, condo price growth is expected to slow by 4.9 percent, less than the 8.4 percent growth rate of 2014.
With record high prices, comes a decline in co-op listing resulting in a drop in Manhattan for-sale inventory. Co-op listings fell 13.3 percent from the third quarter and are down 6.5 percent year-over-year. Condo listings have increased 4.7 percent year-over-year. Through the fourth quarter, 10,129 housing units of various type were available, an 11.7 percent decrease from the third quarter, a result of the decrease in co-op inventory.
Housing units that went under contract in the fourth quarter spent an average time of 5 days on the market, unchanged from the third quarter. Additionally, 22.2 percent of all available units experienced a price reduction, up from the 21.3 percent from the same time last year.