Halstead’s Gastiaburo + Stella team reports that the average Manhattan apartment price fell to $1,921,671 in the fourth quarter, its lowest level in over two years. Fewer luxury closings of both new developments and co-ops, were the driving force behind the 7% decline in the average price from 2016’s fourth quarter. While the number of closings was 4% higher than a year ago, the Brexit announcement and U.S. presidential election led to a very slow fourth quarter of 2016.
Looking at resale apartments, their average price of $1,482,721 was 2% lower than a year ago. Co-ops saw a slight uptick in prices, while condo prices were on average 4% lower than 2016’s fourth quarter. Smaller apartments fared better than larger ones, with the median apartment price 3% higher than a year ago.
Like 2016, increasing uncertainty and a surplus of luxury apartments led to a sluggish fourth quarter for most of the residential market. With tax reform now law, more pressure will be placed on sellers to adjust their prices to the new realities of the market. Once this happens, we should see a release of pent-up demand similar to what occurred at the beginning of 2017.
Gastiaburo + Stella, The Percent for Art Real Estate Team, forging the philosophy that art strengthens communities and builds neighborhood pride. As The Percent for Art Team, we commit a percent of commissions to public art, investing in the neighborhood where we live and work.