Friday, January 7, 2011
Corcoran just released the Fourth Quarter 2010 Report on the Manhattan Residential Real Estate Market. You can download the complete report here for free. It breaks down the neighborhood trends for coops and condos, with a look at luxury homes, lofts, and townhouses too. In 2010, buyers took advantage of lower interest rates and soft prices, to trade-up into larger units, and move from rental properties to ownership. The residential luxury market (the highest priced 10% of apartment sales) is on the rebound now in most categories, by both sales volume and value. This market is less sensitive to interest rates, and may be reacting more to renewed optimism a good sign overall. Additionally, in the commercial investment sales market, companies like Massey Knakal are reporting market wide sales "up substantially over 2009 levels". Some of that represents distressed assets being sold off, but it also means that capital is being deployed again, and the market is finding a new normal. More signs that the recovery is well underway.
It's fair to say that 2010 was a bit of a roller coaster too, with very uneven distribution of sales volume; more properties traded in the second half of the year; summertime was slower than in 2009. I think that market demand is basically holding steady, but have often described the marketplace to colleagues as being "fickle" in 2010.Year over year prices trended upward, yet Q4 compared to Q3 of 2010, showed a mixed bag, with downward pressure on prices evident in some categories. The full report shows the details.
That being said, residential home buyers are expecting better value, being choosy, and taking longer to negotiate & close. Sellers who are realistic on pricing and delivering on value, have had good experiences in making deals. That means a good property, priced well, prepared professionally for showing, and with superior marketing to potential buyers. Brokers widely reported over-bidding on properties where these factors come together, bringing offers to a tipping point.
what's your home worth?As interesting as the latest sales metrics may be, they are broad indicators of trends. Every property is unique, and can perform quite differently in the marketplace. My job is to help my clients price their homes right, and close their deals. If you're thinking about moving, I can provide an analysis of your specific home's value, free for the asking. Send an email or call (212) 444-7844 for more information. Here are some highlights from the Q4 2010 Corcoran Report:
whats popular? downtown homes still lead the market
Downtown Manhattan remained very desirable. Neighborhoods like the Village, Soho and Tribeca seemed to muster really consistent demand all year. However, overall the Downtown neighborhoods below 34th Street, decreased slightly in market share from last quarter, and one year ago. Upper East Side sales also decreased in market share, from 24% a year ago, to 21%. In contrast, the West Side and Midtown East increased their market share to 22% and 11%, respectively.
buyers trade-up in size, and into home ownership
Buyers are taking advantage of lower prices and lower mortgage rates. Trading up to three bedrooms, and moving from rentals into a first purchase, are trends I've noticed confirmed by the year over year numbers. Studios decreased in market share to 12% from 15% a year ago, while One-bedrooms increased to nearly 40% of the market, up from 36% a year ago. Two-bedrooms decreased slightly from 34% a year ago, while three-bedroom and larger residences increased to 17% of the market, up from 15% a year ago.
the luxury market softly rebounds
Manhattan’s luxury market is defined as the highest priced 10% of all co-op and condo sales. These are some of the most expensive homes in the world, and the return of the luxury market is a sign of confidence and strength in the future. These are buyers who are placing substantial equity into their property purchases. Sales volume was up in the second half of the year. Compared to a year ago, median price increased 8% to $4 million while average price per square foot decreased 5% which is attributable to larger apartments trading. Versus Third Quarter 2010, median price declined 2% while average price per square foot increased 6%, to $1,904. Luxury resale condos increased 18% in median price and 9% in average price per square foot versus a year ago while luxury co-ops increased 22% in median price with no change in average price per square foot.
get the total picture of 2010
Download the complete Corcoran Report on the Manhattan Real Estate Market here. It is compiled with closed transaction info from NYC records with the help of Propertyshark, and Corcoran's own experience as the city's largest residential listing broker. It uses market-wide data based on transactions that closed in the Fourth Quarter 2010 (October 1 through December 31) and compares them to closings that took place last quarter and during the same quarter one year ago. I'd be pleased to answer any questions or comments you may have.
download: fourth quarter 2010 market report