As summer officially kicks off, activities in the housing market also switched to a high gear. After a slightly cool April, May and June turned out to be the best months in 2015 in many ways. In Manhattan median sales price registered the high watermark of $1.37 million for the year. The median Days on Market (DOM) reached its lowest level since fall of last year at 43 days, indicating an ever faster pace. The only metric that has been moving in one direction this year is the Total Active Listings (TAL). The graph below tells a good story about the supply. From the trenches we encounter bidding wars almost constantly for listings below 2mm but above 2mm there is a lot to choose from. Perhaps we will finally be at an equilibrium once the light red line reaches the dark red line.
There have been more and more chatters about the super luxury condo market slowing down. The Real Deal reports that just from a statistical standpoint that segment faces a daunting task finding the demand to absorb the large amount of supply coming on. It is also another point of debate whether a slowing luxury market will drag down the rest of the market.
Just how quickly are the new construction condos being sold these days? Looking through all the projects with plans filed in September of last year. If a project started sales at the end of 2014, a 60% or more sold ratio today is above average in this group. Versus the last construction boom pre-2008, this wave sees much more emphasis placed on design and delivering a unique product.