The Aggregate(TM) Report, TOWN's 2014 Q2 Analysis, Sheds Light on NYC Real Estate Sales Market
Reveals Climb in All Asset Classes; Luxury Sales Experience Greatest Upward Year-Over Movement
NEW YORK, NY--(Marketwired - July 01, 2014) - TOWN Residential, Manhattan's leading luxury real estate services firm, has published its 2014 Second Quarter sales report, The Aggregate™ Q2. This comprehensive study of sales behavior across three distinct asset classes -- condominiums, cooperatives and townhouses -- includes data from April through June 2014, and compares those transaction values with quarter-over and year-over values. Based on a sample of 2,497 market transactions, The Aggregate™ is the culmination of figures drawn from the rolling sales data of the Manhattan market along with the live ACRIS feed provided by the New York City Department of Finance.
The report reveals an overall year-over-year climb in asset prices as sales continued to pick up through the start of the year. Building permits were found to have continued to increase year-over-year by approximately 85% for the five boroughs, as the city appears to have remained an active environment for real estate investment and development, as well as a potential safe-haven for domestic and international funds alike.
Damien Parker, TOWN's Chief Statistician and the author of the report, explained, "The current period had more moderate percentage changes regarding quarter-over pricing metrics, while the year-over metrics generally demonstrated the more dramatic pricing movement for the bulk of sales transactions."
The percentage of condos that make up the Manhattan market transactions has increased very gradually on a quarterly basis every quarter for the last full year. In this current period condo sales accounted for approximately 44% of all apartment sales. Yet, this quarter the percentage growth in pricing metrics that primarily supported market wide apartment prices came from increases in the co-op market, not the condo market. This is fairly rare. Despite a historically persistent inventory shortage, the absorption rate and days on market both increased slightly from the first quarter. Once again, year-over, the luxury sales market increased rather significantly since the same period in 2013.
"The Second Quarter report continues to reflect strong demand across all segments of the market, with new TOWN contracts signed, indicating a strong start to the Third Quarter," said Jeff Appel, TOWN's President and COO. "While price appreciation is tempering, the absorption rate is reacting well to new condominium product coming online. The $1 to 3 million range of the market is especially vibrant with continued inventory constraints, and at the same time the $5 million-plus segment has seen 20%-plus year-over-year increases in share of market. The co-op market remains stalwart as buyers find value in this segment, compared to its condominium counterpart which likely explains the large quarter-over-quarter increases. Buyers seeking affordable space will see little relief in the near term while luxury buyers at the upper margin will find themselves with more choices."
ABOUT TOWN RESIDENTIAL
TOWN is a top-ranked, fully integrated Manhattan real estate services firm created through the partnership of Founder and Owner Andrew Heiberger and Founder and CEO Joseph Sitt, specializing in luxury residential sales and leasing and the marketing, sales and leasing of new developments. An integral part of the New York real estate landscape, TOWN has a team that exceeds 600 licensed professionals and staff in ten neighborhood offices: TOWN Greenwich Village, at 530 LaGuardia Place; TOWN SoHo, a landmarked corner storefront at 337 West Broadway dating to 1886; TOWN 79th Street, a corner storefront at 239 East 79th Street on the Upper East Side; TOWN West Village, a trophy office at 446 West 14th Street; TOWN Astor Place, a block-front space overlooking historic Astor Place in the Gwathmey Siegel-designed Sculpture for Living at 26 Astor Place; TOWN Fifth Avenue, located in the prestigious Crown Building at 730 Fifth Avenue at 57th Street; TOWN Flatiron, located at 110 Fifth Avenue and 16th Street; TOWN Greenwich Street, nestled in heart of the Financial District at 88 Greenwich Street; and TOWN Gramercy Park and the corporate team at TOWN Residential, both located at historic 33 Irving Place. For more information about these offices and TOWN Residential, visit: www.townrealestate.com.
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