Manhattan Average Real Estate Price Hits New Record of Over $1 Million

City Living
City Living

Despite volatile stock markets and slowing growth overseas, real estate trends point to high-end real estate sales continuing to climb. Case and point: New York City’s tiny Manhattan borough, ringing in the New Year with astounding numbers in the fourth quarter of 2015.

Shattering records…
Growing 9 percent compared to the previous year, the average sales price of Manhattan homes jumped 12 percent, with median prices hitting a record $1.15 million and the average apartment soaring to a record $1.95 million. The median price per square foot? A staggering $1,645.

Safe haven
Volatile financial markets in other countries as well as China’s market slowdown make the Manhattan real estate market a financial high ground for wealthy investors.

A tale of two markets
New construction hit an average sales price of $3.29 million or $2,210 a square foot. The Manhattan condo market has also seen the average sales price jump 25 percent over last year to $2.66 million, with a price per square foot of $1,959, driven in part by overseas buyers whose real estate trends favor new construction. On the other hand, the co-op market, which is comprised of almost exclusively U.S. buyers and older buildings, reached an average of $1.28 million or $936 per square foot.

How much is too much?
While condos currently make up 19 percent of the market, that amount could double in the next 18 months with the 2015 addition of 5,500 new units and as many more expected this year. Whether or not that inventory will be absorbed remains a question. At the moment, however, Manhattan remains a market driven by supply and demand, with too many buyers and not enough real estate, resulting in the majority of sales coming in at or above listing price.

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