NYC Market Update Q3 2017

Page 1

Q3 | 2017

New York City

Market Update

Web: 00111270


All New York City

Luxury Market

04 Market Overview

09 Luxury Market

05 Market Snapshot | All Areas 06 Inventory | Absorption Rate 07 Days on Market | Listing Discount


Ownership Type Analysis

Neighborhood Analysis

10 Condos

14 Upper East Side

12 Co-ops

14 Upper West Side 15 Midtown 15 Uptown 16 Downtown 16 FiDi | Battery Park 17 Total Sales 17 Average Sales Price


New York City Market Overview

The third quarter of 2017 was marked by a 5% increase in the number of closed sales from 3,483 to 3,657 over the prior year. This is the third consecutive quarter of growth in the number of sales. The average sale price was down 3% while the median sale price was up 11%. Closed sales for the third quarter of 2017 totaled 3,657 compared to 3,483 during the same quarter the prior year. The under $3mil market made up 84% of all sales activity and posted 5% more sales than the prior year. This segment posted an 8% increase in the average sale price and 11% increase in the median sale price. The average and median sale prices in the $3mil to $10mil category increased 4% and 8% respectively while the $10mil+ category reflected a 9% drop in the average sale price and an 7% drop in the median sale price. The average sale price of all recorded Manhattan apartment sales was $1,985,000, a 3% decline over prior year. The median sale price of $1,185,000 was a 2% decline over the prior quarter and an 11% gain over the prior year. The median sale price for all of Manhattan has registered over $1mil for the 9th consecutive quarter. Inventory is at 6,397 listings which is 3% higher than the 6,209 listings in the prior quarter and 12% higher than at the start of 2017. This level of inventory is still below normalized supply levels of 8,000-9,000+/- listings.

DOWNTOWN MANHATTAN BROKERAGE

Diane Levine, Brokerage Manager 149 Fifth Avenue, 4th Floor | New York, NY 10010 | 212.431.2440 EAST SIDE MANHATTAN BROKERAGE

Marissa Ghesquiere, Brokerage Manager 38 E. 61st Street | New York, NY 10065 | 212.606.7784 WEST SIDE MANHATTAN BROKERAGE

Diane Levine, Brokerage Manager 2244 Broadway | New York, NY 10024 | 212.579.9300 sothebyshomes.com/nyc © MMXVII Sotheby’s International Realty, Inc. All Rights Reserved. All information in this report is provided by Vanderbilt Appraisal Company and other third party reports. Since all final closed data for the current quarter had not been reported at the time this report was compiled, the available closed data was extrapolated in an attempt to approximate full results for the current quarter. Actual results may materially vary from the approximated results. This offering is subject to errors, omissions, changes including price or withdrawal without notice. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and co-operate fully. 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.

Web: 0139706


Number of Closed Sales vs. Inventory

Average / Median Sales Price

7000 $2,500,000 6000 $2,000,000

5000 4000

$1,500,000

3000

$1,000,000

2000 $500,000 1000 $0

0

Q4:15

Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 Q3:17 # of Closed Sales

# of Closed Sales

Inventory

Q2:16

Average Sales Price

Inventory

Average Sales Price

Q4:16

Q2:17

Median Sales Price

Median Sales Price

Number of Closed Sales

Average Sales Price

Median Sales Price

{2017 v 2016}

5%

8%

11%

Q3 ‘17

3077

$1,188,000

$980,000

Q3 ‘16

2919

$1,099,000

$880,000

{2017 v 2016}

10%

4%

8%

Q3 ‘17

518

$5,088,000

$4,673,000

Q3 ‘16

472

$4,874,000

$4,309,000

{2017 v 2016}

-33%

-9%

-7%

Q3 ‘17

61

$15,749,000

$12,873,000

Q3 ‘16

92

$17,305,000

$13,892,000

{2017 v 2016}

5%

-3%

11%

Q3 ‘17

3657

$1,985,000

$1,185,000

Q3 ‘16

3483

$2,039,000

$1,064,000

UNDER

$3 Million

BETWEEN

$3 - 10 Million

OVER

$10 Million

ALL

Price Points

Overview

/ New York City Q3 Market Update


Inventory All New York City

1% 7%

4%

Number of Active Listings

29%

10%

1859 1655 1452 626 457 254 94

23% 26%

Under $1 Million $1 - 2 Million $2 - 4 Million $4 - 6 Million $6 - 10 Million $10 - 20 Million $20 Million and Above

CONDOS & CO-OPS (based on 6 months of closed sales 03/01/2017-08/31/2017) The overall Manhattan absorption is 6 months which in a general sense signifies a market in “equilibrium�. The historic range of equilibrium for the market area is 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. The lower price segments continue to experience shortages of inventory with $1mil at 4 months of supply and from $1mil- $2mil at 5.6 months of supply. Units priced from $6mil to $10mil have a 10.4 month absorption rate. The top two price tiers above $10mil both have an over one year supply, signifying an oversupply that has resulted in discounts and longer marketing time for the highest valued properties. As the oversupply continues in the highest price brackets it is increasingly more difficult for sellers in the top price segments to remain inflexible in their price expectations.

25.0 20.0 15.0

Absorption Rate

10.0

Line of Equilibrium

5.0

Absorbtion

0.0

Less than $1M - 2M $2M $1M $4M

$4M $6M

$6M $10M

$10M $20M

$20M+


Average Days on Market Listing Discount

All New York City

Q4 2015

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

Average Days on Market

77

82

88

84

91

96

98

82

Listing Discount

6%

5%

7%

6%

7%

3%

6%

5%

Average Days on Market vs. Listing Discount 120

8% 7%

100

6% 80

5%

60

4% 3%

40

2% 20

1%

0

0%

Q4:15

Q1:16

Q2:16

Q3:16

Average Days on Market

Q4:16

Q1:17

Q2:17

Q3:17

Listing Discount

Overview

/ New York City Q3 Market Update


Property from a Distinguished Private Collection ANDY WARHOL Dollar Sign, 1981 To be sold 16 November in New York Contemporary Art Evening Auction

November 2017 New York Auction Calendar

Impressionist & Modern Art Evening Sale Auction 14 November Impressionist & Modern Art Day Sale Auction 15 November Contemporary Art Evening Auction Auction 16 November Contemporary Art Day Auction Auction 17 November

We invite you to explore our real estate listings at sothebyshomes.com and view the worldwide auction schedule at sothebys.com/auctions. 1334 YORK AVENUE, NEW YORK, NY 10021 ENQUIRIES +1 212 606 7000 SOTHEBYSHOMES.COM SOTHEBYS.COM/AUCTIONS FOLLOW US @SOTHEBYS © 2017 ANDY WARHOL FOUNDATION FOR THE VISUAL ARTS / ARTISTS RIGHTS SOCIETY (ARS), NEW YORK SOTHEBY’S, INC. LICENSE NO. 1216058. © SOTHEBY’S, INC. 2017


The Luxury Market All New York City Co-Ops, Condos & Townhouses Over $10m

Total Volume by Price Point Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Q3 2017

118

67

92

72

74

82

61

Average Sales Price

$18,200,000

$18,935,000

$17,305,000

$18,527,000

$19,018,000

$17,582,000

$15,749,000

Highest Sales Price

$44,833,000

$59,144,000

$13,892,000

$60,894,000

$65,662,000

$55,000,000 $44,000,000

# of Closed Sales

Over the third quarter of 2017 there were 61 ultra-luxury sales, which is a 37% decline from the prior year and 26% decline from the prior quarter. The average sale price in this market sector was $15,749,000 posting a 10% decline over the prior quarter and a 9% decline over the prior year. The highest posted sale price this quarter was $44mil for the Penthouse unit at 795 Fifth Avenue. s ot h ebys h o m es.c o m /n yc

Average Selling Price vs. # of Closed Sales 150

$20,000,000

120

$16,000,000

90

$12,000,000

60

$8,000,000

30

$4,000,000

0

$0

Q1:16

Q2:16

Q3:16

Q4:16

# of Closed Sales # of Closed Sales

Q1:17

Q2:17

Q3:17

Average Price Average SalesSales Price The Luxury Market

/ New York City Q3 Market Update


Condos {Q3 | 2017}

manhattan

Condominium closings increased 3% from the prior year. The average sale price declined 11% to $2,703,000 quarter over quarter while the median sale price was up 5% to $1,727,000. The average price per square was unchanged. The under $3mil segment posted an 8% increase in the average sales price; a 5% increase in price per square foot and a 10% increase in median sale price. For condo units over $10mil, the market measures were lower this quarter with a 14% decline in the average sales price and a 9% decrease in the median price. The number of closed sales was down 41% year over year in this sector as luxury sales experience an oversupply and resistance to unrealistic pricing by buyers. The average price per square foot remained unchanged.

-11

%

Change in Average Selling Price {2017 v 2016}

3

%

Change in Units Sold {2017 v 2016}

1583 Units Sold

2.7m

$

Average Selling Price

Web: 0139751


Number of Closed Sales 2000

Average / Median Sales Price

$3,500,000

1800 $3,000,000 1600 $2,500,000

1400 1200

$2,000,000

1000

$1,500,000

800

$1,000,000

600 $500,000

400

$0

200

Q4:15

0

Q2:16

Average Sales Sales Price Price Average

Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 Q3:17

Q4:16

Q2:17

Median Sales Price Median Sales Price

Number of Closed Sales

Average Sales Price

Median Sales Price

Median Price/Sq.Ft.

{2017 v 2016}

9%

8%

10%

5%

Q3 ‘17

1192

$1,453,000

$1,325,000

$1,495

Q3 ‘16

1097

$1,341,000

$1,200,000

$1,424

{2017 v 2016}

-3%

6%

10%

0%

Q3 ‘17

345

$5,310,000

$4,986,000

$2,391

Q3 ‘16

356

$5,023,000

$4,529,000

$2,391

{2017 v 2016}

-41%

-14%

-9%

0%

Q3 ‘17

47

$15,304,000

$12,782,000

$3,738

Q3 ‘16

79

$17,740,000

$13,981,000

$3,744

{2017 v 2016}

3%

-11%

5%

0%

Q3 ‘17

1583

$2,703,000

$1,727,000

$1,757

Q3 ‘16

1532

$3,045,000

$1,650,000

$1,750

UNDER

$3 Million

BETWEEN

$3 - 10 Million

ABOVE

$10 Million

ALL

Price Points

Condos

/ New York City Q3 Market Update


Co-Ops {Q3 | 2017}

manhattan

Third quarter 2017 co-op sales volume was up by 6% from the prior year. The average overall co-op price posted an increase of 15% at $1,439,000. In the under $3mil segment, the average sale price increased 7% and median sale price increased 6% year over year. Closed sales increased 3% compared to third quarter 2016. For co-op units in the price tier ranging from $3mil to $10 mil, the measures posted a gain of 5% on the average sales price while the median sales price was up 3% year over year. There were 14 recorded sales in the top tier co-op price bracket $10mil and higher posting an 11% increase in the number of closed sales year over year.

15

%

Change in Average Selling Price {2017 v 2016}

6

%

Change in Units Sold {2017 v 2016}

2074 Units Sold

1.4m

$

Average Selling Price

Web: 00111610


Number of Closed Sales

Average / Median Sales Price

2500

$1,600,000 $1,400,000

2000

$1,200,000 $1,000,000

1500

$800,000 $600,000 $400,000

1000

$200,000 $0

500

Q4:15

Q2:16

Q4:16

Average Sales Price

0

Q4:15 Q1:16 Q2:16 Q3:16 Q4:16 Q1:17 Q2:17 Q3:17

Q2:17

Median Sales Price

Average Sales Price

Median Sales Price

Number of Closed Sales

Average Sales Price

Median Sales Price

{2017 v 2016}

3%

7%

6%

Q3 ‘17

1886

$1,021,000

$800,000

Q3 ‘16

1822

$953,000

$756,000

{2017 v 2016}

50%

5%

3%

Q3 ‘17

174

$4,646,000

$4,000,000

Q3 ‘16

116

$4,416,000

$3,875,000

{2017 v 2016}

11%

17%

-7%

Q3 ‘17

14

$17,196,000

$13,312,000

Q3 ‘16

13

$14,660,000

$14,300,000

{2017 v 2016}

6%

15%

10%

Q3 ‘17

2074

$1,439,000

$870,000

Q3 ‘16

1951

$1,250,000

$793,000

UNDER

$3 Million

BETWEEN

$3 - 10 Million

ABOVE

$10 Million

ALL

Price Points

Co-Ops

/ New York City Q3 Market Update


new york city

Neighborhood Highlights Upper East Side

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

231

231

0%

Average Sales Price

$2,537,000

$2,382,000

7%

Median Sales Price

$1,750,000

$1,530,000

14%

COOPS

Q3 2017

Q3 2016

% Change

589

507

16%

Average Sales Price

$1,847,000

$1,521,000

21%

Median Sales Price

$990,000

$875,000

13%

Closed Sales

This market area showed an increase in the number of closed sales in the coop sector and no change in the condominium sector. The average co-op sale price posted a 21% increase to $1,847,000 while the median sale price increased 13% from the prior year to $990,000. Condo average sale prices were up 7% to $2,537,000 from $2,382,000. The condo median sale price was up 14% since last year.

Upper West Side

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

255

175

46%

Average Sales Price

$2,443,000

$2,576,000

-5%

Median Sales Price

$1,650,000

$1,725,000

-4%

COOPS

Q3 2017

Q3 2016

% Change

418

397

5%

Average Sales Price

$1,572,000

$1,372,000

15%

Median Sales Price

$1,050,000

$970,000

8%

Closed Sales

The total number of co-op sales on the Upper West Side was 418, an increase of 5% from the prior year. Co-ops in this market area posted an average sale price of $1,572,000, a 15% increase from the prior year. The condo sector decreased in both the average sale price and the median sale price. The average condo sale price was $2,443,000 and the median sale price was $1,650,000.


Midtown

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

329

262

26%

Average Sales Price

$2,419,000

$3,685,000

-34%

Median Sales Price

$1,495,000

$1,393,000

7%

COOPS

Q3 2017

Q3 2016

% Change

276

210

31%

Average Sales Price

$973,000

$1,055,000

-8%

Median Sales Price

$699,000

$716,000

-2%

Closed Sales

The average co-op sale price in this market area decreased 8% to $973,000 while the median co-op price decreased 2% over the prior year. This market area had an average condo sale price of just $2,419,000 compared with $3,685,000 the year prior. Lower average and median price statistics this period were due mostly in part to fewer closings at 432 Park Avenue.

Uptown

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

153

149

3%

Average Sales Price

$961,000

$857,000

12%

Median Sales Price

$720,000

$702,000

3%

COOPS

Q3 2017

Q3 2016

% Change

119

176

-32%

Average Sales Price

$561,000

$595,000

-6%

Median Sales Price

$500,000

$525,000

-5%

Closed Sales

Neighborhood Highlights

The average sales price of co-ops was lower by 6% to $561,000 from $595,000 the prior year. The median sale price decreased 5% to $500,000. Market measures were significantly higher in the condo unit sector with a 12% gain in the average condo sales price and a 3% gain in the median condo sales price. The average condo unit price reached $961,000 with the median condo sale price reaching $720,000. The number of co-op sales was down 32% while condo sales was up 3%.

/ New York City Q3 Market Update


new york city

Neighborhood Highlights Downtown

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

464

562

-17%

Average Sales Price

$3,970,000

$3,929,000

1%

Median Sales Price

$2,835,000

$2,620,000

8%

COOPS

Q3 2017

Q3 2016

% Change

642

623

3%

Average Sales Price

$1,360,000

$1,226,000

11%

Median Sales Price

$925,000

$799,000

16%

Closed Sales

The 642 co-op sales in the third quarter of 2017 marked a 3% increase year over year. The coop average sale price measure was up 11%, rising to $1,360,000 from $1,226,000. The median co-op sale price was up 16% ending this quarter at $925,000. In the condo sector, the number of closed sales was down 17% compared to the prior year. However, the average sales price was up 1% while the median sales price increased 8%.

Financial District / Battery Park

{# of Closed Sales | Average Sales Price | Median Sale Price - Year over Year}

CONDOS

Q3 2017

Q3 2016

% Change

Closed Sales

151

153

-2%

Average Sales Price

$1,880,000

$2,344,000

-20%

Median Sales Price

$1,255,000

$1,590,000

-21%

COOPS

Q3 2017

Q3 2016

% Change

29

38

-24%

Average Sales Price

$908,000

$862,000

5%

Median Sales Price

$778,000

$775,000

0%

Closed Sales

There were 151 condo units closed in the third quarter of 2017, a 2% decrease over the prior year. The average condominium price decreased 20% in the third quarter of 2017. The median sales price declined 21% year over year. However, the third quarter 2016 median sale price and average sale price were skewed due to numerous high priced sales at 212 Warren including the sale of a penthouse unit. Co-op average sale prices posted a gain of 5% while the median sale price was unchanged since last year.


Total Number of Sales by Neighborhood 1400 1200 Upper East Side

1000

Upper East Side Upper West Side

800

Upper West Side Midtown

600

Midtown Downtown Downtown

Uptown

400

Uptown

Fi Di / Battery Park City 200

FiDi / Battery Park

0

Q4:15

Q1:16

Q2:16

Q3:16

Q4:16

Q1:17

Q2:17

Q3:17

Average Sales Price by Neighborhood $3,500,000 $3,000,000

Upper East Side

Upper East Side

$2,500,000

Upper West Side

Upper West Side

$2,000,000

Midtown

Midtown

Downtown

$1,500,000

Uptown

Uptown

Downtown

$1,000,000

FiDi / Battery Park

Fi Di / Battery Park City

$500,000 $0

Q4:15

Q1:16

Q2:16

Q3:16

Q4:16

Q1:17

Q2:17

Q3:17

Neighborhood Highlights

/ New York City Q3 Market Update


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© MMXVII Sotheby’s International Realty, Inc. All Rights Reserved. All information in this report is provided by Vanderbilt Appraisal Company and other third party reports. Since all final closed data for the current quarter had not been reported at the time this report was compiled, the available closed data was extrapolated in an attempt to approximate full results for the current quarter. Actual results may materially vary from the approximated results. This offering is subject to errors, omissions, changes including price or withdrawal without notice. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and co-operate fully. 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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