The Research Department at Corcoran just released their 1Q2017 Corcoran Report.
The overall sentiment is that the Manhattan real estate market in the first quarter of 2017 is off to a positive start. Contract activity grew by 3% year-over-year and this was the first time in six quarters. As we have discussed in other blog posts, the first six weeks of the year saw buyers and sellers narrowing their expectations making it easier to find a trading price. This pent-up demand from the 3rd and 4th quarter of 2016 quickly washed through the market in 6 weeks and the market consolidated and started moving sideways.
First Quarter 2017 saw greater contract activity than the same period last year.
- Manhattan market remains largely under-supplied at 5.3 months
- Despite a 10% y-o-y increase in inventory
- There continues to be an under-supply of quality inventory at the lower price points
- 3rd and 4th 2016 slowdown resulted in an 8% decrease in closed sales in 1Q2017
- Increased inventory resulted in listings spending an average of 14 days longer than last year
- Smaller and less expensive residences remained the most competitive
Finally, pricing was basically unchanged with the average price up around 1 percent while the median price fell about 1 percent. Similar results with the average price per square foot rose 3% to $1,918 per square foot, however, the median price per square foot dropped by 1 percent to $1,360.
The Meier Team is experiencing the Manhattan real estate market that Corcoran Research Team is analyzing in their quarterly report. In our April newsletter, we discussed a very active market during the first six weeks of the year and a consolidation and sideways move during the last six weeks. Our prediction over the next three months is for the market to move lower in price as it moves out of its current trading band. With a team of 14, including our new Townhouse professional, we have an excellent perspective on the market and our clients are the beneficiaries. Let us know if we can assist you with your real estate needs in Manhattan or Brooklyn.