NEW YORK CITY—While the figures may differ slightly, new research from a trio of residential brokerage firms is in lockstep agreement on two key results. The apartment market in New York City is very strong entering 2016, and it has reached all-time highs in sale price in most neighborhoods.

For example, residential brokerage firm Compass in its fourth quarter Manhattan market report, released today, states that the median price for a Manhattan apartment surged to a new record high $1.24 million in the fourth quarter. New record median prices were also set on the Upper West Side at $1.3 million, Downtown at $1.7 million, Midtown West at $1.4 million and Midtown East at $923,000.

The report, authored by Garrett Derderian, research and data analyst with Compass, also notes that properties were on the market for 48 days (median) and the share of available inventory priced more than $3 million was 23.9% at the close of 2015. The total available listings at the end of the fourth quarter in Manhattan was 8,740 properties, which calculated out to a 6.8-months supply.

"As we enter 2016, we expect prices to continue to climb as many new developments initiate the closing process. Inventory is forecast to remain in short supply," states Derderian. "The ultra-luxury sector will continue to be closely watched as the sales pace in this price bracket has slowed."

He adds that several new high-end developments currently under construction will only add further supply to what is an already crowded sector of the residential market in Manhattan.

Brown Harris Stevens in its fourth quarter report also notes that many new records were set in 2015, including highest average and median sales prices. The average Manhattan apartment sale price of $1,944,744 was up 10% from a year ago. At $1.15 million, the median price increased 18% from a year ago. The number of reported closings, 2,484, was down 16% from the third quarter of 2015 but higher by 12% over the last quarter of 2014. Condominiums accounted for 50% of sales, the highest percentage since the first quarter of 2009. The number of new development sales jumped 75% over the fourth quarter of 2014 and accounted for 26% of all fourth quarter transactions.

Other statistical highlights from the Brown Harris Stevens report include the median price for a re-sale apartment in Manhattan for the fourth quarter was $917,075, which was up from the previous quarter and from the same period last year. The average price of resale cooperative apartment was $1,253,285, essentially unchanged from the previous quarter but 8% higher than a year ago due largely to 3+bedroom sales. The average price for a resale condominium traded in the fourth quarter was $2,031,667, up 8% from the same period in 2014.

Hall F. Willkie, president of Brown Harris Stevens residential sales, says Manhattan's residential sector has evolved into two distinct markets—new development and resale. "Although we continue to see what seem to be many new condos coming to market, it's important to note that currently of the approximately 280,000 owned apartments in Manhattan, the majority—about 189,000— are co-ops.'

However, he warns that the latest market statistics is not a reflection of current market conditions since sales take several months to close. "Although inventory has been low for some time, we expect an influx of new development and resale listings in the coming weeks but buyers will continue to be highly informed and very savvy and only those apartments that are priced correctly will sell," he says.

Halstead Property's fourth quarter report also cites a number of Manhattan sales records being eclipsed. Climbing 10% from a year ago, the average apartment price reached a new record of $1,944,744 while the median price soared 18% from a year ago to $1.15 million. The average and median prices were fueled by a surge in new development closings, the brokerage firm notes.

"While the overall market figures were pushed higher by increased new development sales, our resale market remains strong. Low inventory combined with steady demand brought the average resale apartment price 8% higher over the past year," states Diane M. Ramirez, CEO of Halstead Property.

For all of 2015, apartment prices averaged a record $1,814,927 in Manhattan, up 7% from 2014, Halstead reports. The median sales price also set a new high, rising 9% from 2014 to $999,000. Pricing gains during the year were helped by a 44% jump in the number of new development closings, whose average price is almost double that of resale apartments. The total number of sales was just 1% higher in 2015, with 13,025 closings reported through December 28th, the firm reports.

Instant Insights /

Resi Market Shatters Sale Price Records

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