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