CONDOS & CO-OPS
OVERVIEW:
The third quarter of 2016
concluded with a strong gain in the overall average sale price and median sale
price. However, there is a palpable sense that these indicators are lagging and
not representative of the current, softening market trend. With inventory
rising, sales volume declining, buyers having pre-election jitters and a
general anxiety about economic conditions - the market has transitioned away
from the sustained, rising price trend witnessed over the last few years.
The clear advantage held
by sellers over the last few years appears to have dissipated. With 3,242
closed sales in the third quarter of 2016, there were 18% fewer closing than prior
year. Although the overall average sale price was $2,077,000, posting a 19%
increase over the prior year, much of the increase in the average sale price
can be attributed to a spate of new construction closings.
For all properties sold
under $3 mil, where 83% of activity falls, the average sale price was
essentially at and the median price rose just 1%. This is the strongest sign of
softening market conditions as prior periods posted much higher gains in this
price segment.
In the $3 million to $10 million
price bracket, prices were also at with an average sale price of $4,931,000,
nearly equal with prior quarter. In the top price tier segment, units sold over
$10mil, the average sale price rose 12% while the median sale price increased a
modest 4% than prior year.
Noting that luxury buyers
are showing some hesitancy, there is a shift in the market to increasingly bene
t buyers. There is now more inventory for the buyer to choose from and the
price acceleration seen over the last few quarters is leveling off.
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