Manhattan Luxury Homes Article on Market Conditions

Most market indicators in the luxury homes category continued to show weakness since it has been most directly affected by job losses in the financial sector.
Like the prior quarter, prices continued to weaken
The average sales price at $2,689,433, was a modest 0.9% decline from the $2,713,761 seen in the prior quarter. The median sales price saw a more substantial drop of 11.5% to $2,000,000. Surprisingly, the average price per square foot rose 1% to $1,134 per square foot from $1,123 in the prior quarter and increased 9.9% from the $1,032 average.

Since in the prior year quarter. The average sales price is still 7.6% below the $2,909,679 average in 2002 and 9.4% below the $2,969,751 average seen in 2001.
Manhattan luxury units are taking longer to sell
The average number of days to sell a luxury apartment was 173, which is a 12-day decline over the prior quarter average of 185. The average discount from list price was 7.8%, an improvement from the 9.4% discount seen in the prior quarter but nearly double the 4% average discount from list price seen in the overall market.
The average size has decreased
As seen in the overall market trends, the average apartment size declined 10.9% to 2,372 square feet over the prior year quarter, the smallest quarterly average in more than 2 years and the 4th consecutive quarterly decline. This market segment has been the focus of much of the newly built or converted high-end housing over the past five years. Since Manhattan real estate prices reflect a premium for large contiguous space, it made economic sense to configure new developments with larger apartments to maximize the achievable price per square foot. Sellers in this market category may sit on the sidelines until overall economic conditions improve. This sub-category is the analysis of the top ten percent of all co-op and condo sales. The data is also contained within the co-op and condo markets presented.
The number of sales of Manhattan luxury properties returned to more normal levels
There were 126 sales this quarter, an 18.2% drop over the prior quarter and 54.5% or roughly half of the record number seen in the prior year quarter. This is the third consecutive quarterly decline after three consecutive quarters with a record high number of sales. The current number of luxury homes sales is more in line with the quarterly sales activity seen in 2001 which averaged 137 sales per quarter prior to 9/11.
The time to sell a Manhattan luxury home and the amount of negotiability have stabilized
The average days on market was virtually unchanged from the prior quarter at 156 days but is still 11 more days that the prior year quarter. The average discount from list price, also known as negotiability, improved to 6.8% from the prior quarter average of 8.2% but remains above the 5.1% discount seen last quarter.
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Manhattan Luxury Homes Article on Market Conditions