Average Manhattan Real Estate Sales Prices Hit Record Highs in 2016: Report

NEW YORK, NY — An influx of luxury apartments in the Manhattan real estate scene has pushed average sales prices to record highs, despite fewer overall sales in 2016, according to a quarterly report released Wednesday by Halstead Property.

The average sales price of Manhattan real estate in the fourth quarter of 2016 was $2,110,566, according to the Halstead Property report. The figure represents a 9 percent increase from the fourth quarter of 2015.

But not all prospective buyers in Manhattan should freak out about shelling out more than $2 million for an apartment. Record-high sales prices are driven by luxury sales, so the numbers may not reflect current trends in Manhattan real estate, a Halstead Property executive said in a statement.

“While the fourth quarter posted record pricing for Manhattan apartments, the increase was driven by luxury new development closings which do not necessarily reflect current market conditions. The resale market is softening, with average resale price slightly lower than a year ago, homes spending more time on the market, and sellers becoming more willing to negotiate,” said Diane Ramirez, chairman and CEO of Halstead Property.

The average new development sold for $4,709,602 in the fourth quarter of 2016 compared to $3,108,874 in the fourth quarter of 2015. This was the fourth consecutive record-setting quarter for new development prices and is likely driven by the increasing cost of luxury condos and coops.

Luxury developments are more expensive than ever, which is causing the average sales price to rise, but the median sales price in Manhattan decreased 4 percent compared to last year. The lower median sales price could be caused by the softening of the resale market.

After resale prices in Manhattan hit a record high in the second quarter of 2016 they have since lowered to hover around $1.5 million, according to the Halstead report, more than $3 million cheaper than new developments.

The report was conducted by Halstead Properties — a real estate company with 1,200 agents working in New York, New Jersey and Connecticut.

Check out the full report from Halstead Properties here.

Photo by Massimo Catarinella via Wikimedia Commons/CC by 3.0