The Weekly Manhattan Real Estate Update
The Luxury Sector: Thirty contracts were signed last week in Manhattan at $4 million and above, five more than the previous week. Condos outsold co-ops, 19–7, with four townhouses in the mix. For the first time since the week of June 2, 2014, the top five contracts were on the Upper East Side. It was reported in the Wall Street Journal and on the website Curbed about the trendy resurgence of the Upper East Side! The No. 1 contract signed last week was a townhouse at 18 E. 71st St. asking $29 million. It was listed in the middle of September. It was owned by Bill Cosby and was subject to foreclosure proceedings. The No 2 contract was a triplex at 895 Park Avenue asking $21.5 million reduced from $29.75 million when it was listed back in March.
Overall listing Supply: There are currently 6,937 listings on the market ready to sell. That’s an increase of 5.9% from last month and .8% from this time last year. Overall, market supply growth is slowing, so whether we reach the 7,000-handle this fall season remains to be seen – but it’s going be close. Looking at the weekly numbers, 309 new listings came on the market last week, representing a 16.9% drop week-over-week. While this is typical for this time of year, it would be encouraging to see more inventory come online and help attract buyers into the market. As we move further into October, expect the weekly supply rate to continue decreasing, which is aligned with historical trends as the fall selling season starts winding down. An interesting note: off-market activity increased 4.4% week-over-week, with 142 listings coming off market unsold. This is a notable trend to watch, as it may signal seller hesitation and/or missed expectations on pricing.
The Contract Signed Rate (The 30-Day Pace of Buy Demand): Last week, 848 apartments were reported under contract – 19.8% more than last month, a healthy gain. However, for the first time in many months, the year-over-year contract rate declined, down 4.6% compared to the same time last year. So far, the fall market has yet to hit its stride in terms of stringing together strong, consistent weeks of contract signings – a pattern that is typically seen in October, often referred to as the “contract sign” month of the fall season. Looking at the weekly numbers, 206 apartments went into the contract last week, a 3.5% increase from the week prior. This is also the second consecutive week where the weekly contract rate total exceeded the 200 mark, which is a positive sign. That said, the weekly pace will need to post substantial gains in the coming weeks to close the nearly 5% year-over-year gap, and to reach the anticipated 900+ contract signings expected for October.
