NEW YORK CITY—The median price for a Manhattan residential property in the third quarter shattered all previous records, breaking the $1-million threshold at $1.04 million.
The median price for a Manhattan property rose 4.1% in the third quarter as compared to three months earlier and 10.6% as compared to the same period in 2014, according to residential brokerage firm Compass. In its third quarter market report authored by Compass' Trevor Shanklin and Garrett Derderian, the firm reports several other records were broken that should put upward pressure on sale prices.
Available inventory hit a record low in the third quarter with just 6,366 properties on the market. An increase in demand and closings were key factors in the borough achieving its record $1.04 million median price. Total supply dropped to a record low 4.9 months, which Compass states is adding pressure to an already tight market.
“Looking ahead to Q4 2015, we expect prices to continue to increase and inventory to remain in short supply,” the Compass report predicts. “As we approach the last quarter of 2015, one segment that continues to be closely watched is the high-priced luxury sector, as additional new development come available, adding to what is widely viewed as a top heavy market.”
Other key takeaways from the Compass report include record-setting median sale prices set in the third quarter in both Downtown and on the Upper West Side. Downtown set a new record high median sale price of $1.4 million, overtaking the second quarter's historic high water mark of $1.3 million. Sale prices have increased on average 2.2% each quarter in Downtown since 2010.
The Upper West Side set a new record median price of $1.2 million, besting the previous record set in the fourth quarter of 2014 of $1.1 million.
Borough-wide the median-price-per-square-foot reached $1,417 at the end of the third quarter of this year, which exceeded the pre-recession peak of $1,234 by 15.3%.
Resale condo prices fell slightly in the third quarter of this year to $1.3 million down 5.6% from the second quarter of 2015 when the median price was $1.4 million.
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