The Manhattan real estate market took a breather in August with the median sales price leveling off to $1.29mm from July’s $1.4mm. Median Days on Market also lengthened from 49 days to 73 days. But behind this summer lull, the market saw consecutive inventory declines in the last 3 months. The current absorption rate stands at 4.4 months, which is half of the long-term average of 8.8 months. Brooklyn did not slow down even in August with its median sales price clocking in at $1.15mm, up 25k from July. The overall trend of Brooklyn, at least in certain areas, catching up with Manhattan continues with full force. Average rent in Brooklyn once again climbed faster than Manhattan. We still see a market with a healthy amount of buyers and sellers willing to strike a deal. However, the stock market turmoil has caused some havoc in the high end of the market ($5mm and above). Multiple colleagues have said that some of their overseas investors have pulled out of deals because of the dampened mood caused by the capital markets. This factor coupled with the heavy supply that is forming, is causing the high end of the real estate market to take longer to clear sales.
Some good to reads:
- 4 years in, housing recovery still has ways to go
- NYC offers more attractive yield and pricing point than London and Singapore – NYC is poised to surpass other gateway cities as a destination for international investors
- The new condo market sees rare drop in price per square foot – it is now at $2,250/sqft vs. $2,303/sqft for 2014. This is a result of more “affordable luxury” units trading, as opposed to the whole market sliding. Developers are not slashing prices, but units on the high end are not closing as fast