NEW YORK, June 26, 2015 /PRNewswire/ --
Key facts:
- According to the StreetEasy Condo Price Index, condo resale
prices remain at a record high 11.6 percent above their previous
peak in September 2007, but the pace
of condo price growth continues to slow with prices remaining
essentially flat from April to May.
- Total inventory declined 2.8 percent from April and was down
7.4 percent from this time last year.
- The median sale-to-list price ratio for Manhattan condos was 99.4 percent in May,
meaning a condo typically sold for 99.4 percent of the initial
asking price.
- Condos spent a median of 43 days on the market in May, 6 days
less than in April and 1 day less than this time last year.
The spring inventory boost to the Manhattan condo market in April did not carry
through to May, as condo inventory dropped by 2.8 percent from
April and was down 7.4 percent from this same time last year. With
just 3,778 units on the market, May offered the lowest number of
available condo units recorded during any May month over the last
five years, according to the May 2015
StreetEasy® Manhattan Condo Market
Reporti.
In the face of shrinking inventory, condo buyers were eager to
act and ready to pay high prices. According to the StreetEasy Condo
Price Indexii, condo prices are 11.6 percent above their
previous peak in September 2007, but
the pace of condo price growth continues to slow with prices
remaining essentially flat from April to May. The median
sale-to-list price ratioiii in Manhattan was 99.4 percent in May, meaning the
typical sale price among condos that closed was 99.4 percent of the
initial asking price. Midtown West
and Lower East Side had sale-to-list price ratios of 100.1 percent
and 104.9 percent, respectively, indicating that the vast majority
of condo sales that closed in those neighborhoods sold at prices
above the initial asking price.
Condos spent a median time of 43 days on the market in May,
which is 6 days less than in April and 1 day less than this time
last year. Lack of new inventory translated into an overall drop in
contracts signed in May. Pending sales, or condos that went into
contract, fell 6.7 percent from April and were 9.4 percent below
this same time last year.
"Constricted condo inventory helped sellers get a greater share
of their initial asking price as buyers competed for an even
smaller pool of available units. We're looking at a market that is
ripe for bidding wars," said StreetEasy data scientist Alan
Lightfeldt. "As supply continues to shrink and sellers hold on to
the bargaining power, condo buyers can expect competition to remain
fierce."
Prices are expected to stick around current levels as the market
enters the slower summer months. The StreetEasy Condo Price
Forecastiv predicts flat prices from May to June.
The full report and additional analysis from StreetEasy Data
Scientist Alan Lightfeldt can be viewed at
streeteasy.com/blog/market-reports.
About StreetEasy:
StreetEasy is New York City's leading local real estate
marketplace on mobile and the Web, providing accurate and
comprehensive for-sale and for-rent listings from hundreds of real
estate brokerages throughout New York
City and the major NYC
metropolitan area. StreetEasy adds layers of proprietary data and
useful search tools to help home shoppers and real estate
professionals navigate the complex real estate markets within the
five boroughs of New York City, as
well as Northern New Jersey and
the Hamptons.
Launched in 2006, StreetEasy is based in Manhattan's Flatiron neighborhood. StreetEasy
is owned and operated by Zillow Group (NASDAQ: Z).
StreetEasy is a registered trademark of Zillow, Inc.
(ZFIN)
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 http://streeteasy.com/blog/market-reports/.
StreetEasy also tracks data for the five boroughs within
New York City.
ii The StreetEasy Condo Price Index (SECPI) 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 sale-to-list price ratio is the final
recorded sale price divided by the initial asking price on
StreetEasy, expressed as a percentage. A ratio above 100 percent
indicates that the home sold for above initial asking price,
whereas a ratio below 100 percent indicates that the home sold for
less than the initial asking price.
iv 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.
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SOURCE StreetEasy