Happy New Year! In this edition, we bring you a brief recap of Manhattan’s luxury real estate market in 2014 as well as our predictions for the coming year.
2014: A Year in Review
Manhattan’s luxury real estate market in 2014 was characterized by elevating prices and a rising number of options for purchasers. Residential sales remained strong as sales volume reached $16.8 billion in 2014, up 17% over last year’s figure. The average asking price of the luxury market was $8.14 million up from $7.85 million the previous year. Two interesting statistics to note are that 53% of all luxury contracts were downtown, and 41% of luxury apartments were sold off of floor plans.
Inventory has been on the rise since 2013’s record low, but still remains short of equilibrium, and overall Manhattan’s property market soared amidst strong economic growth, a booming stock market, and continued foreign investment as a hedge against global economic uncertainty.
2015: What’s Next?
We see new developments in both Midtown and Downtown continuing to rise as Manhattan’s new construction market remains the focus this coming year. There are an anticipated 6,287 new units set to launch in 2015 compared to 3,112 in 2014.
We anticipate the market to remain strong despite concerns of over-saturation and the fear of another bubble bursting. On the contrary, we see the market stabilizing in 2015 with prices easing amongst greater supply of new product hitting the market. The wave of new development should ease price growth to a more sustainable level and pair well with a slower sales pace, because intelligent purchases will lack a sense of urgency and want to see the full range of product now available. We believe the new inventory will sell, it will just take longer. The overall luxury market remains strong and deep despite price and pace easing, as the rise in inventory remains short of equilibrium.
The rise in inventory is accompanied by a greater number of options for purchasers. The number of new developments has forced developers to focus on design, quality, and aesthetics. We believe that right now there is something for everyone and that 2015 will be the time for buyers who have been waiting for the right time to get in the game. There are a number of pre-construction developments we have early access to and would be happy to discuss.
Whether you’re buying, selling, leasing, or investing in Manhattan we’d be happy to guide you through the process. We have over 30 years of industry experience and pride ourselves on our efficient and discreet process. If you have any questions or just want to talk real estate, please don’t hesitate to give us a call.
Liz and Noel