NYC Real Estate Market Report – Market Rebounded to the Heat!

The NYC real estate market rebounded nicely off the September lows this month, offering comfort to the market that the lower numbers were just seasonal and a reflection of the slower summer pace. Median Sales Price (MSP) rebounded to $1.38 million, from September’s $1.2 million.  In September 2014, the MSP was $1.25 million and it recovered to $1.39mm in October 2014.  One metric that did not go back to its pre-summer level was the median Days on Market (DOM).  DOM maintained the 70-73-day range since summer, up from the 50s we saw earlier in the year.  Brooklyn, where properties have taken less time to sell than Manhattan, reported a similar 70 DOM this month for the first time this year.  Another metric that was also taking on a firm trend was the Absorption Rate (AR) – inventory measured by months of supply.  AR spent the year moving from the mid 6 to 7 months.  The long-term average is 8 months.  What we are currently seeing is a market migrating slowly towards a long term equilibrium after 5 years of recovery.  The luxury segment of the market has been a different story with a much more cautious tone.

There are currently a few development projects that are in their early stages of marketing and worth noting because of how well they are doing (40-50% sold within weeks):

  1. 318 West 52nd Street – conversion of a post office building, featuring high ceilings and individual outdoor space.  A very unique product for this neighborhood. (http://streeteasy.com/building/the-sorting-house)
  2. 280 Saint Mark’s Avenue – boutique building emphasizing brightness and the connection between indoor and outdoor space.  (http://streeteasy.com/building/280-st-marks-avenue-brooklyn)
  3. 465 Pacific Street – a building with everything you would want in the great neighborhood of Boerum Hill. (http://streeteasy.com/building/465-pacific-street-brooklyn)

 

Reference:

Bernzel, Kathryn; “The F-Word: Forty”; Nov, 1 2015; The Real Deal;  http://therealdeal.com/issues_articles/the-f-word-frothy/

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