Price of Manhattan apartments drops for the fourth straight quarter

According to this week’s market reports, the median price for a Manhattan apartment dropped for the fourth straight quarter and U.S. construction spending reached a record high in May.

Residential

The average sales price in Manhattan dropped 4.3 percent to $2.2 million in the four weeks leading up to June 1. The slight drop coincided with an increase in recorded sales. During the period, the number of sales stood at 923 transactions, up from 820 deals during the previous month. The most expensive sale for the period was for unit 85 at One57. The 6,200-square-foot home was sold for $53 million, or $8,649 per square foot. Read the report here.

The asking price for Manhattan homes dropped 3.4 percent on a year-over-year basis to $1,714. For the month of June, the housing market’s supply and demand figures remained soft. Supply, as measured through active listings, rose by 8.9 percent compared to the same time last year. Meanwhile, demand, as measured through closed sales, dropped 41.7 percent on a year-on-year basis. Read the report here.

The median apartment price in Manhattan fell for the fourth straight quarter, dropping 9 percent on a year-on-year basis to $1.1 million. The figure represents the lowest median price for the borough since the fourth quarter of 2016. The median price decline in the second quarter was partly due to a sluggish new development market, which registered 30 percent fewer closing compared to the same time last year. Overall, the borough registered a 12 percent drop on a year-over-year basis. Resale apartments also sold for the highest discounts in over five years.

Commercial

Construction spending in the US rose to a record high of $1.3 trillion in May. The increase, which amounts to a 4.5 percent hike compared to the same month last year, is due to grow in residential and public investment. Private residential spending outpaces other segments with a 6.6 year-over-year increase, followed by 4.7 percent for public construction and 1.8 percent for private non-residential construction.

Source: The Real Deal NY 

Filed under: Headlines by Wendy Jackson
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