NEW YORK, Aug. 29, 2014 /PRNewswire/ --
Key facts:
- Manhattan condo inventory grew
5.4 percent in July 2014 compared to
July 2013, the largest annual
increase since October 2009.
- Manhattan condo sale prices
rose 1.1 percent from June to July to a 19-year high, and remain 10
percent above year-ago levels, according to the StreetEasy Condo
Price Index.
- The StreetEasy Condo Price Forecast predicts condo price growth
will post a slight gain in August, rising 0.4 percent from the
prior month.
- Pending sales, or homes that entered into contract, decreased
8.5 percent from June and are 7.1 percent below year-ago
levels.
- Median time on market for Manhattan condos increased to 63 days in July
after spending spring months at a record low of 49 days.
This Manhattan summer brought
an expected seasonal slowdown in condo shopping activity, with July
pending sales falling 8.5 percent from June and condos spending an
additional 14 days on market compared to this spring. The slowdown
helped to push Manhattan's
constrained condo inventory higher than year-ago levels, increasing
5.4 percent compared to July 2013 -
the largest annual increase in nearly five years, according to the
July StreetEasy® Manhattan Condo Market Report[i].
Despite the annual growth, condo inventory in Manhattan is still well below historically
normal levels. In July, inventory was 16.2 percent below the
five-year average for Manhattan
(see Figure 1), a deficit that will continue to drive up condo
prices.
Manhattan condo prices
increased by 1.1 percent to a 19-year high in July and remain 10
percent higher than prices in July
2013 as measured by the StreetEasy Condo Price Index[ii].
This is the highest price reported since StreetEasy began
tracking the market in 1995. Prices are predicted to post another
modest gain in August (0.4 percent) from the prior month, according
to the StreetEasy Condo Price Forecast[iii].
"The market has been starved for more supply, and the growth in
prices is a direct result of stubbornly low inventory that simply
cannot keep pace with demand in Manhattan," said StreetEasy Data Scientist
Alan Lightfeldt. "The hope was for a
greater lift from the busy spring months, but with inventory still
so far below normal, condo prices will continue to hover at or
above record highs."
Condos that went into contract in July spent a median of 63 days
on the market[iv], a jump from spending three consecutive months at
a record low of 49 days during the busy spring season (March-May).
At the previous market peak (March
2008), condos were listed for a median of 105 days before
they entered into contract.
Figure 1: Change from 5-Year Average Inventory
Photo - http://photos.prnewswire.com/prnh/20140828/141178
The full report, including a neighborhood breakdown of
StreetEasy Manhattan Condo Market Report data and additional
analysis, can be viewed at streeteasy.com/nyc/market/reports.
About StreetEasy:
Launched in 2006 and acquired by
Zillow, Inc. in August 2013,
StreetEasy is New York City's
leading real estate marketplace, providing accurate and
comprehensive for-sale and for-rent listings from hundreds of real
estate brokerages in New York
City. The site adds layers of deep, proprietary data and
useful search tools that help consumers and real estate
professionals navigate the complex real estate markets within the
five boroughs of New York City,
Northern New Jersey and the
Hamptons.
About Zillow:
Zillow, Inc. (NASDAQ:Z) operates the
leading real estate and home-related information marketplaces on
mobile and the Web, with a complementary portfolio of brands and
products that help people find vital information about homes, and
connect with the best local professionals. Zillow's brands serve
the full lifecycle of owning and living in a home: buying, selling,
renting, financing, remodeling and more. In addition, Zillow offers
a suite of tools and services to help local real estate, mortgage,
rental and home improvement professionals manage and market their
businesses. Welcoming 89 million unique users in July 2014, the Zillow, Inc. portfolio includes
Zillow.com®, Zillow Mobile, Zillow Mortgage
Marketplace, Zillow Rentals, Zillow Digs®, Postlets®, Diverse
Solutions®, Agentfolio®, Mortech®, HotPads™ and StreetEasy®. The
company is headquartered in Seattle.
Zillow.com, Zillow, Postlets, Mortech, Diverse Solutions,
StreetEasy, Agentfolio, Digs and Make Me Move are registered
trademarks of Zillow, Inc. HotPads is a trademark
of Zillow, Inc.
[i] The StreetEasy Manhattan Condo Market Report is a monthly
overview of the Manhattan condo
real estate market. The report data is aggregated from public
sources by a number of data providers and real estate brokerages
for all five major submarkets within Manhattan, with most metrics dating back to
1995. The reports are compiled by the StreetEasy Research team. For
more information, visit streeteasy.com/nyc/market/reports.
StreetEasy also tracks data for the five boroughs within
New York City.
[ii] The StreetEasy Condo Price Index (SECPI), previously named the
StreetEasy Condo Market Index, provides a measurement for how
prices are moving in the Manhattan
condo real estate market. It is based on a repeat-sales method,
which compares the sale prices of the same properties over time.
The SECPI is indexed to the year 2000 with a value of 100. A value
of 200, for example, would indicate that Manhattan condos are trading at twice their
2000 price. Since the repeat-sales methodology tracks price changes
over time in the same unit, the SECPI is a much more reliable
measure for sale prices as it controls for biases and errors
created by variables such as location, size, age, and
condition.
[iii] The StreetEasy Condo Price Forecast (SECPF) predicts the
change in Manhattan condo sale
prices one month out from the current reported period. By
incorporating the StreetEasy Condo Price Index, StreetEasy's
comprehensive database of listing prices and days on market - two
leading indicators to future condo prices - we are able to
accurately forecast next month's condo prices before the release of
publicly recorded sales data.
[iv] Median days on market measures the number of days from the
original listing on StreetEasy to when it enters into contract.
After a buyer enters a contract on a unit, it is pulled from the
market and is no longer available to other buyers - creating a
logical end point to "days on market."
(ZFIN)
Download PDF for additional analysis and images for the July
StreetEasy Condo Market Report -
http://origin-qps.onstreammedia.com/origin/multivu_archive/ENR/FX-NY00265-20140829-1.pdf
SOURCE StreetEasy