Fourth
Quarter 2015 market sales prices were forced upward to record high market
measures, influenced by a large increase of new construction closings. Condo
closings accounted for 51% of total sales. More significantly, a greater share
of those sales occurred in new construction projects. With 3,183 closed sales
in the fourth quarter of 2015 (3% fewer than prior year) the overall average
sales price was $2,014,000, showing an 11% increase over the prior year. The
overall median sales price also had a significant year-over-year increase of
17% to $1,150,000. In the analysis presented by three distinct price tiers –
under $3M; $3M to $10M; and over $10M – the rising market price trend is most evident
in the two lower tiers. Properties sold under $3M in this quarter accounted for
84% of the total market sales. However, the quarter saw 7% fewer closed sales
in this price tier as compared to the same quarter in 2014. In the next price
tier, $3M to $10M, the average sales price showed an increase of 8% and a median
sales price increase of 12%. There were 34% more sales this quarter over the
prior year and units sold in this price tier accounted for approximately 15% of
total sales. The top price tier (properties over $10M) is where we encountered
a decrease in average sales price. With fewer record setting sale prices in the
top tier of the market, the average sales price for units sold over $10M dipped
19%, while the median sales price increased marginally by 6%.
The New York City residential real estate market
had a strong fourth quarter and a strong full year in 2015. According to the Vanderbilt Appraisal
Company, the average sales price increased a remarkable 11% over last year and
the overall median sales price was up an extraordinary 17%. These price
increases were driven by low inventory at the lower price points resulting in
exciting bidding wars. If you are interested in buying a studio or one bedroom,
be prepare to act swiftly. More people are coming to New York City to
experience the city that has it all and fewer are leaving. If you are ready to
expand your “nest”, there are many new condominiums about to hit the market,
filled with the latest amenities from resident spas to basketball courts. It is
also a great time to buy at the high-end and ultra-luxury (properties over
$10M) price points, as we have seen a slight softening with more units and
longer days on the market. With the ultra-luxury market, the fourth quarter of
2015 had 10% fewer sales and prices were statistically lower as compared to the
end of 2014 which included record closings at One57.
Please visit us at www.RubenPerezNYC.com
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