May 2017- Spring Has Sprung- Blockbuster Q1
The Luxury Market in Manhattan had a Very Active Q1 2017
Words: Wesley Holland
Spring is certainly in the air in New York City, with the tulips in full bloom on Park Avenue and trees from Battery Park to Central Park showing their colors. I hope you have found time to enjoy what is one of the best times in the city!
The residential market’s momentum continued through April. I discussed in previous editions that the luxury market had a strong start to the year, however, fresh data from the Real Estate Board of New York (REBNY) reveals just how strong Q1 of 2017 was for the market.
REBNY revealed that there was $12.3B in residential sales in Q1, representing a 15% increase from 2016!
Additionally, Manhattan’s average condo price reached $3M, up 27% from the previous year.
Aside from owning your primary home, these numbers show the strength of real estate
as an alternative asset in an investment portfolio. Real estate is often looked to as a more stable asset than equities and bonds in times of uncertainty, and New York luxury real estate has been a safe haven for global investment in times of turmoil.
Aside from this data that represents a bird’s eye view of total dollar volume from Q1, digging in deeper reveals that deal volume increased as well. This is a very good sign for the mar- ket, and one I have seen as listings in different segments are becoming more competitive with buyer’s needing to make decisions more quickly.
With the start of summer just around the corner at the end of this month, I want to share a bit of insight into a market that is often thought of as an extension of the Manhattan residential market- The Hamptons.
The ultra-luxury market in The Hamptons went through a boom after the Financial Crisis, but is now in a period of stability. Headlines paint a picture of a slow high-end market on the East End, however, there is moderate activity in the segment, pricing has just become more realistic like we’ve seen in the ultra-luxury segment of NYC. The $1–5M market in The Hamptons is showing very strong activity. In fact, sales in this segment have jumped 21.6% year-over-year. With the busy summer season just around the corner, this is a great sign for the market!
Neighborhood Focus: Tribeca
Tribeca continued to show its strength as one of the most desirable neighborhoods in the city throughout Q1 of 2017 with the median price up 24.3% year-over -year. Condo inventory dominated the listings with the bulk of properties for sale in the $3–5M price range. We expect median prices to continue to rise as high-end projects such as 70 Vestry will become to close.
