The NYC real estate market trend kept its strong tone in July. Median sale price in Manhattan reached $1.4 million, the highest level since last fall. Median number of days on the market also reached one of its lowest levels, at 49 days.
One good measure to keep an eye on as an indicator of the market is the percentage of deals done with the mortgage contingency. Low level of contingency indicates an environment of multiple offers, where sellers are able to demand no contingency. In July, only 40% of all condo purchases were financed, out of which half had mortgage contingencies. This means only 20% of all Manhattan condo purchases had mortgage contingencies. This number was higher for coop purchases at 36%.
Another good measure to keep an eye on the pulse of the market is the Absorption Rate (AR), the number of months needed to absorb all available apartments for sale. The AR for condos in the $1-$1.49 million range is currently on the low end of the range at 5.6 months. Coinciding with the seasonality of the real estate market, AR has increased every month since January and it peaked in April at 6.5 months. Since the summer started, this number has been decreasing every month.
It will be interesting to see what the August and September numbers tell us, especially after theone of the most tumultuous weeks in the history of capital markets worldwide.