YEAR END REPORT 2018


Report on Contracts Signed
NYC Residential Properties
YEAR END REPORT
2018

1108 Contracts Signed

2018 ended with a 5.5% decrease over 2017 in the number of contracts signed at $4 million and above in Manhattan. Year-to-date, 1,108 contracts were signed, totaling $9,077,371,226. The decline in contracts signed was attributed to weakness in the 1st quarter (-15%) and 4th quarter (-14%) over the same quarters in 2017. In the end, the 2018 luxury market was saved by a strong 2nd quarter and a slight uptick in the 3rd quarter. The 4th quarter saw only 247 contracts signed--averaging less than the benchmark 20 contracts signed per week. However, by other metrics--dollar volume, average price, and median price--it was the worst 4th quarter since 2012, the year before the new development boom of 2013 to 2015 started to attract a surge of buyers purchasing units off of floorplans. It’s interesting to note that this year’s dismal 4th quarter coincides with the worst December in the stock market since 1931, when the Great Depression kicked into high gear.

Other notable trends: The condo market recorded a 10% decline in the number of contracts signed. The average condo asking price was the highest we have seen--$8,211,488--translating to $2,932/sq.ft.. Those numbers were above the golden years, 2013-2015, when the condo market’s average asking price was below $2,800/sq.ft.

One bright spot was the townhouse market, which posted a 19% increase in contracts signed—119 houses in 2018 compared to 100 houses in 2017. The market responded to an average 5% drop in $/square foot asking price ($1,797/sq.ft.).

Drilling down through the numbers, a couple of things stand out: The length of time on the market stretched to 447 days, up from 433 days in 2017 and 318 days in 2016. This worrisome trend reflected an overpriced market in which a typical property dropped its asking price by 9% before it found a buyer. The market showed clear signs of strong buyers’ resistance, prompting an ongoing price correction set against the backdrop of a volatile stock market and a change in the tax law that capped state, local, and real estate tax deductions at a total of $10,000. In addition, buyers could only deduct interest on new mortgages below $750,000.

Happy Holidays to all, and to all a healthy and peaceful 2019.

CLICK HERE To View the Olshan Luxury Report for the week of December 17-23, 2018.


NYC Luxury Report: Year End 2013-2018 COMPARISON CHART


Contracts Signed $4 M and above 2013 2014 2015 2016 2017 2018
# of Co-op Contracts $4 million and above 288 282 296 222 252 251
# of Condo Contracts $4 million and above 905 891 904 751 810 728
# of Condop Contracts at $4 million and above 49 14 14 17 10 10
Total # of Contracts Signed on Apartments 1242 1187 1214 990 1072 989
# of Townhouse Contracts $4 million and above 130 153 130 112 100 119
Total # of Contracts Signed Apartments + Houses 1372 1340 1344 1102 1172 1108
# of Contracts Purchased from Sponsors/New Development 475 481 456 435 440 426
# of Contracts Signed Asking $10 million and above 252 270 227 215 200 207
Total Volume $10,854,826,824 $11,256,284,299 $10,738,479,892 $8,937,866,862 $9,104,329,032 $9,077,371,226
Average Asking Price $7,851,594 $8,140,776 $7,940,624 $8,090,463 $7,761,413 $8,180,303
Median Asking Price $6,366,072 $6,440,048.00 $6,289,375 $6,367,820 $6,149,606 $6,289,038
Average Price Decline Before a Signed Contract 3% 4% 5% 6% 8% 9%
Days on Market 172 181 243 318 433 447
Condo Average Asking Price $7,719,542 $7,832,105 $7,739,656 $8,099,463 $7,868,236 $8,211,488
Condo Average Asking $/sq.ft. $2,766 $2,783 $2,825 $2,929 $2,874 $2,932
Condo Average Size 2,814 2,801 2,731 2,755 2,725 2,797
Co-op Average Asking Price $6,756,788.00 $7,727,973 $7,280,086 $7,063,249 $6,665,210 $7,356,186
Townhouse Average Asking Price $9,514,252 $10,256,784 $10,993,444 $10,400,788 $9,559,078 $10,012,419
Townhouse Average Asking $/sq.ft. $1,750.00 $1,829.00 $2,077.00 $1,944 $1,897 $1,797
Townhouse Average Size 5,553 5,621 5,288 5,531 5,208 5,638



END OF THE YEAR 2018 REPORT
2018: 1108 Total Contracts Signed on All Properties
2017: 1172 Total Contracts Signed on All Properties
2016: 1102 Total Contracts Signed on All Properties

NYC Luxury Tracking Scoreboard: Sales $4 Million and Above


East West Midtown Downtown Asking $/sq.ft. Totals
2018
Apartments
216 219 115 439 Avg. Co-op Ask:
$7,356,186
Avg. Condo Ask:
$8,211,488
Avg. Condo Ask:
$2,932/sq.ft.
Avg. Condo Size:
2,797/sq.ft
989
2017
Apartments
252 178 132 510 Avg. Co-op Ask:
$6,665,210
Avg. Condo Ask:
$7,868,236
Avg. Condo Ask:
$2,874/sq.ft.
Avg. Condo Size:
2,725/sq.ft
1,072
2016
Apartments
195 161 138 496 Avg. Co-op Ask:
$7,063,249
Avg. Condo Ask:
$8,099,463
Avg. Condo Ask:
$2,929/sq.ft
Avg. Condo Size:
2,755/sq.ft
990
2018
Townhouses
35 25 9 50 Avg. Townhouse Ask:
$10,012,419
Avg. Townhouse Ask:
$1,797/sq.ft.
Avg. Townhouse Size:
5,638 sq.ft.
119
2017
Townhouses
29 28 11 32 Avg. Townhouse Ask:
$9,559,078
Avg. Townhouse Ask:
$1,897/sq.ft.
Avg. Townhouse Size:
5,208 sq.ft.
100
2016
Townhouses
32 32 5 43 Avg. Townhouse Ask:
$10,400,788
Avg. Townhouse Ask:
$1,944/sq.ft
Avg. Townhouse Size:
5, 531/sq.ft
112
2018 Total Contract Sales Volume: $9,077,371,226
Average Asking Price on All Properties: $8,180,303
Median Asking Price on All Properties: $6,289,038
Average Discount from Original Ask to Last Asking Price: 9%
Average Days on Market: 447
2017 Total Contract Sales Volume: $9,104,329,032
Average Asking Price on All Properties: $7,761,413
Median Asking Price on All Properties: $6,149,606
Average Discount from Original Ask to Last Asking Price: 8%
Average Days on Market: 433
2016 Total Contract Sales Volume: $8,937,866,862
Average Asking Price on All Properties: $8,090,435
Median Asking Price on All Properties: $6,367,820
Average Discount from Original Ask to Last Asking Price: 6%
Average Days on Market: 318



Donna Olshan
President
dso@olshan.com

Emily Chen
Private Wealth Real Estate Services
Chief of Research
ecc@olshan.com

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Donna Olshan and Olshan Realty
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