NYC Market Report 2nd Half 2013

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New york city market report Second half 2013


A MESSAGE FROM OUR MANAGERS: What a year in NYC real estate! The scarcity of inventory created bidding wars at most price points. Slight year over year increases in prices were noted, according to our year-end report, and closings will continue in the new upper-echelon luxury condominiums, where record breaking sales prices were achieved. According to The New York Times, a strong local economy, stock market gains and steady foreign interest helped bolster demand for Manhattan apartments as supply continued to shrink. Seems like everyone wants to live here. Is it your time to grab a slice of the Big Apple? DOWNTOWN Brokerage

EAST SIDE Brokerage

Diane Levine Senior Vice President Brokerage Manager

Ellie Johnson Senior Vice President Brokerage Manager

t: +1.212.431.2440 149 Fifth Avenue, 4th Floor New York, NY 10010

t: +1.212.606.7660 38 East 61st Street New York, NY 10065

FEATURED listings

LISTINGS AROUND THE WORLD

UPPER east SIDE, NY

in metropolitan markets

Price: $3,650,000- $15,500,000 The 2-4 bedroom residences are thoughtfully conceived with wellproportioned rooms combining traditional New York living with a modern aesthetic.

*All price shown are in USD

Houston, Sugar Land

BOSTON

Los Angeles

5 br / 5 ba / 2 hf ba $4,950,000

3 br / 3 ba / 1 hf ba $4,975,000

6 br / 9 ba $5,800,000

SANTA FE

PALM BEACH

Ventura

5 br / 5 ba / 2 hf ba $4,800,000

3 br / 4 ba / 1 hf ba $4,700,000

5 br / 4 ba $5,195,000

South Africa

Puerto Rico

Australia

6 br / 6 ba $5,186,242

5 br / 5 ba / 2 hf ba $4,400,000

in resort markets

SoHO, NY

in foreign markets

Price: $3,450,000 | Web ID: 0136939 Tastefully renovated 2 bedroom home, measuring 2,130+/- gross sq ft. with 3 exposures on a high floor; the home is bathed in light.

5 br / 4 ba / 1 hf ba

© MMXIV Sotheby’s International Realty, Inc. All Rights Reserved. This material is based upon information which we consider reliable but because it has been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. This offering is subject to errors, omissions, changes including price or withdrawal without notice. Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractor sales associates and are not employees of Sotheby’s International Realty, Inc. Equal housing opportunity.

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Manhattan overall 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

Average Sale Price

$1,388,089

$1,314,288

$1,358,665

$1,421,862

$1,410,640

$1,420,468

$1,470,444

$1,527,776

$1,404,253

$1,530,001

Median Sale Price

$860,000

$795,000

$810,000

$840,000

$825,000

$830,000

$850,000

$860,000

$849,000

$874,000

The number of closed sales in the second half of 2013 was 17% higher than the first half of the year. The total number of 7,504 is the second highest 6 month total of the last five years and 4% higher than the last 6 months of 2012. The average overall sale price in the second half of 2013 was approximately $1,530,000 which was 9% higher than first half of the 2013 closings and is the highest average sale price achieved since at least 2008.

overall number of closed sales in manhattan 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 -

The median sale price over the last 6 months of 2013 was $874,000, nearly 3% higher than first half of 2013 and also the highest median price achieved since at least 2008.

1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

*Co-ops, Condos. Excludes sales less than $150,000

average and median sales in manhattan $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $1H:09

2H:09

1H:10

2H:10

1H:11

Manhattan Avg Sale Price

*Source: Vanderbilt Appraisal Company | info@vanderbiltappraisal

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2H:11

1H:12

2H:12

Manhattan Median Sale Price

1H:13

2H:13


Manhattan Breakdown CO-OPs There was an increase of 21% in the total number of co-ops sales in the second half of 2013 versus the first half of 2013. With 4,349 sales, co-ops accounted for 58% of the total number of sales in the second half of 2013. The average sale price increased approximately 7% from prior period while the median co-op price was 5% greater than first half of 2013. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

Average Sale Price

$984,010

$948,865

$1,040,179

$1,126,210

$1,128,883

$1,108,808

$1,156,268

$1,240,267

$1,064,454

$1,134,542

Median Sale Price

$603,000

$610,000

$640,000

$667,000

$663,000

$655,000

$656,000

$670,000

$650,000

$682,000

Number of Sales

average and median sale price $1,400,000

5,000 4,500

$1,200,000

4,000

$1,000,000

3,500

$800,000

3,000 2,500

$600,000

2,000

$400,000

1,500

$200,000

1,000 500

$0 1H:09

0

2H:09

1H:10

2H:10

1H:11

2H:11

Manhattan Coop Avg Sale Price

1H:09 2H:09 1H:10 2H:10 1H:11 2H:11 1H:12 2H:12 1H:13 2H:13

1H:12

2H:12

1H:13

2H:13

Manhattan Coop Median Sale Price

condos

The number of condo sales was 3,155 accounting for 42% of the total sales in this period. The number of closed condo sales was higher by 12% from the first half of 2013. The average sale price of all Manhattan condo sales in the second half of 2013 was nearly $2,075,000, a gain of 13% over the first 6 months of the year. The average price per square foot increased 10% to $1432/sf, the highest level seen since at least 2008. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

Average Sale Price

$1,740,064

$1,736,561

$1,738,385

$1,764,005

$1,728,510

$1,792,182

$1,837,929

$1,901,032

$1,836,596

$2,074,662

Median Sale Price

1,150,000

$1,040,000

$1,100,000

$1,100,000

$1,078,000

$1,100,000

$1,136,000

$1,187,500

$1,230,000

$1,270,000

Average $ per Sq Ft

$1,212

$1,175

$1,144

$1,163

$1,166

$1,219

$1,251

$1,272

$1,301

$1,432

Number of Sales

average and median sale price $2,500,000

4,000 3,500

$2,000,000

3,000 $1,500,000

2,500 2,000

$1,000,000

1,500 $500,000

1,000 500

$1H:09

1H:09 2H:09 1H:10 2H:10 1H:11 2H:11 1H:12 2H:12 1H:13 2H:13

2H:09

1H:10

2H:10

1H:11

2H:11

Manhattan Condo Avg Sale Price

DOWNTOWN MANHATTAN BROKERAGE: 149 Fifth Avenue, 4th Floor, NYC 10010 | 212.431.2440 EAST SIDE MANHATTAN BROKERAGE: 38 East 61ST Street, NYC 10065 | 212.606.7660 sothebyshomes.com/nyc

1H:12

2H:12

1H:13

2H:13

Manhattan Condo Median Sale Price

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Manhattan breakdown condo and co-ops The overall Manhattan absorption rate stands at 3.1 months which is a rate that signifies a “seller’s market�. The historic range of equilibrium for the market area is between 6-9 months. The absorption rate is calculated by taking the total number of currently active listings and dividing by the average number of closed sales over the 6 month period. Nearly all price segments are experiencing a relative shortage of inventory. The top price tiers have rates that are much higher than the 9-month, equilibrium level. However, this level of supply is fairly common in the top tier price bracket. $300k$499k

$500k$999k

$1 mil $1.5 mil

$1.5 mil $2 mil

$2 mil $3 mil

$3 mil $6 mil

$6 mil $10 mil

$10+ mil

Active

483

884

363

344

411

475

277

258

Average Closed/mo

189

433

158

111

108

81

26

13

Absorption

2.6

2

2.3

3.1

3.8

5.9

10.7

19.8

Overall Absorption Rate

active

3.1

absorption rate 20+

7% 8%

18

14%

14% 25%

$300-$499K

16

$500k-$999k

14

$1 mil - $1.5 mil

12

$1.5 mil - $2 mil

10 8

$2 mil - $3 mil

6

$3 mil - $6 mil 12%

4

$6 mil - $10 mil 10%

2

$10+ mil

10%

Equilibrium (6-9 Months)

0

$300-$499K $500k-$999k $1 mil - $1.5 $1.5 mil - $2 mil mil

$2 mil - $3 mil

$3 mil - $6 mil

$6 mil - $10 mil

$10+ mil

Ultra-Luxury Market

($10+ million, including Coops/Condos/Townhouses)

Over the second half of 2013 there were 79 ultra-luxury sales, far more than closed in the first half of the year. The average sale price of properties in this market segment was $16.9mil in the second half of 2013 which is higher than prior 6 months by 8% but lower than prior 12 months by 4%. The highest posted sale since 2009 remains the $88mil sale in 2012 at 15 CPW. The highest sale in the current period was the PH at 18 Gramercy which closed for $42mil. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

Number of Sales

25

53

50

58

54

50

58

77

44

79

Average Sale Price

$15,198,438

$15,646,320

$15,634,380

$15,927,489

$16,278,404

$16,863,252

$19,387,197

$17,698,195

$15,717,868

$16,914,000

Highest Sale Price

$37,500,000

$40,000,000

$33,177,000

$40,000,000

$48,000,000

$34,602,000

$88,000,000

$54,000,000

$29,250,000

$42,000,000

*Source: Vanderbilt Appraisal Company | info@vanderbiltappraisal

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neighborhood breakdown upper east side

The total number of co-op sales increased nearly 21% from first half of the year. The average sale price was nearly $1,518,000, a gain of nearly 9% over the first half of the year. The number of condo sales increased 19% from prior 6 months while the average sale price of an Upper East Side condo increased by 44% to just over $2,713,000. The major increase was due to a large number of transactions over $5,000,000. There were triple the number of $5mil-plus sales in the second half of 2013 which led to the record average condo price in the Upper East side region. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Co-op Sales

457

933

1,007

896

919

798

894

1184

1,015

1,224

Average Co-op $

$1,458,948

$1,298,684

$1,468,608

$1,593,265

$1,575,823

$1,638,024

$1,760,900

$1,830,063

$1,397,565

$1,517,543

# of Condo Sales

412

475

487

389

385

346

401

435

444

527

Average Condo $

$2,290,871

$1,995,161

$2,049,963

$1,939,262

$1,901,642

$2,011,844

$1,938,704

$1,907,577

$1,882,075

$2,713,038

Upper West Side

The total number of co-op sales on the Upper West Side was 846, an increase of nearly 21% from the first half of the year. There were also far more closed condo sales over the last 6 months of 2013 with nearly 28% more sales than first half of the year. The average coop price rose 6% while the average condo sale price gained just 3% to reach nearly $2,190,000. The relatively small gain in the average condo price despite strong market conditions was due to a larger percentage of lower priced re-sales as opposed to higher priced new constructions units. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Co-op Sales

374

838

809

699

690

674

702

853

702

846

Average Co-op $

$994,837

$925,863

$1,049,008

$1,263,124

$1,208,298

$1,193,941

$1,128,471

$1,239,712

$1,133,494

$1,202,263

# of Condo Sales

264

598

527

509

418

496

428

505

400

511

Average Condo $

$1,794,050

$1,956,259

$2,052,615

$2,191,280

$2,089,866

$2,530,081

$2,581,360

$2,316,343

$2,119,046

$2,189,694

midtown

There was a 17% increase in the number of co-op sales in Midtown with 701 sales as compared to just 597 from the first 6 months of the year. This is the highest co-op activity in this region since at least 2008. The average sale price of a co-op was nearly $836,000, a gain of 6% from the first half of the year. The average condo price was $1,558,000 with 11% more closed sales during the last half of 2013. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Co-op Sales

229

474

554

458

462

390

445

612

597

701

Average Co-op $

$679,132

$821,894

$739,191

$822,750

$794,881

$702,810

$800,682

$816,428

$785,982

$835,866

# of Condo Sales

310

584

563

544

636

560

589

719

599

662

Average Condo $

1,457,756

$1,492,995

$1,403,621

$1,683,817

$1,590,262

$1,452,766

$1,601,416

$1,592,590

$1,543,832

$1,558,250

uptown

Over the last 6 months of 2013, there far more coop sales in this region with 339 closed sales as opposed to 241 closed in the first 6 months of the year. The average sale price of co-op sales sold in the last half of 2013 was 8% higher than the first half. The average sale price of the 225 closed condo sales was $669,000, an incremental rise over the prior period 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Co-op Sales

96

179

200

168

155

230

208

251

241

339

Average Co-op $

$430,196

$389,860

$402,821

$420,049

$420,022

$459,794

$437,160

$499,994

$405,231

$436,612

# of Condo Sales

106

189

208

269

236

191

233

210

209

225

Average Condo $

$618,320

$614,626

$550,885

$629,905

$586,169

$621,635

$622,708

$684,085

$660,009

$668,632

*Source: Vanderbilt Appraisal Company | info@vanderbiltappraisal DOWNTOWN MANHATTAN BROKERAGE: 149 Fifth Avenue, 4th Floor, NYC 10010 | 212.431.2440 EAST SIDE MANHATTAN BROKERAGE: 38 East 61ST Street, NYC 10065 | 212.606.7660 sothebyshomes.com/nyc

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neighborhood breakdown downtown

The 1,239 co-op sales in the second half of 2013 was an increase of 20% as compared to first half of the year while in the condo category, there were 10% more sales in the latter half of 2013. The average sale price for co-ops increased 7% while condo units had an increase of nearly 9% to $2,687,000. The average prices of both co-ops and condos are at the highest levels registered in this area since at least 2008. 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Co-op Sales

495

1,001

1,006

910

976

1013

983

961

1,031

1,239

Average Co-op $

$787,447

$789,482

$904,470

$953,389

$919,143

$898,470

$944,887

$931,986

$1,004,943

$1,076,061

# of Condo Sales

508

786

911

890

804

743

836

711

833

919

Average Condo $

1,936,804

$2,121,830

$2,131,538

$2,024,311

$2,209,810

$2,110,049

$2,191,818

$2,342,234

$2,473,005

$2,687,461

financial district

There were fewer total condo units closed in the second half of 2013 as compared to the 2 prior periods. However, the average sale price of a condo in this market increased 13% from 6 months ago and nearly 20% from one year ago.

1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

# of Condo Sales

298

291

310

206

359

225

272

330

335

311

Average Condo $

$1,271,685

$1,071,121

$963,958

$1,117,516

$1,039,557

$1,070,716

$985,183

$1,033,987

$1,098,559

$1,239,091

summary total number of sales

Average sale prices $2,000,000

2,400 2,200

$1,750,000

2,000

$1,500,000

1,800 1,600

$1,250,000

1,400

$1,000,000

1,200 1,000

$750,000

800 600

$500,000

400

$250,000

200 1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

1H:13

2H:13

Upper East Side

Upper West Side

Midtown

Uptown

Downtown

Financial District

*Source: Vanderbilt Appraisal Company | info@vanderbiltappraisal

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$0 1H:08

2H:08

1H:09

2H:09

1H:10

2H:10

1H:11

2H:11

1H:12

2H:12

Upper East Side

Upper West Side

Midtown

Uptown

Downtown

Fiancial District


New York CitY third Quarter 2013 Market Report

©MMVIII Sotheby’s International Realty Affiliates LLC. All Rights Reserved. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity. Operated by Sotheby’s International Realty Inc. This material is based upon information which we consider reliable, but because it has been supplied by third parties, we cannot represent that it is accurate or complete, and it should not be relied upon as such. This offering is subject to errors, omissions and changes


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