Over the years, the real estate market in Manhattan has been strict. This is in terms of the prices of the condos and other real estate developments. The prices have now lowered within the first three months of the year. It could be the effect of the 2014/15 winter period or maybe it is because the inventory is gradually expanding. This is a research that was carried out by the brokerage firms in New York and other top real estate developers, like Jody L Kriss. This means that the market is gradually stabilizing after the prices increased over the years.
The prices and demand
It is approximated that the median price for an apartment in Manhattan is around $970,000. This one is lower than the price in the previous year, which was at $972,428.
There has been a decline in sales of the real estate units in the last three-quarters of the previous years. It is approximated that the transaction number of the houses fell by about 20% in 2014. This fell from about 3,307 units to 2,661 within one year.
Throughout 2013 to June 2014, there was an increase in the demand that finished the year with a fiscal cliff. A number of real estate developers say that there was a massive volume in the sales of the units in Manhattan during this period. They now believe that the harsh prices are all gone and the sales are gradually creeping back.
The larger apartment had a big sale and they were also very much popular back in the days. The studios and the one-bedroom apartments were not as popular as such though the demand remains avid. As of now, the larger apartments are more compared to the past years. The 3-bedroom apartments rose to 919 units, which is around 18.1%. The 4-bedroom apartments rose to 650 units, which is around 3.2%.
There was also an increased trend in the 3-bedroom condos. The 3 bedroom apartments had a drop in their prices from around $5,780,800 in 2014 to about $5,123,600 this year. The inventory has crept up on the $4 million to $20 million real estate market. There are more luxurious apartments being constructed. Since these units are aggressively priced, they have a low demand.
The length of time to sell a property, which is the absorption rate, has increased for the 3-bedroom apartments and bigger. In march 2014, the absorption rate was 7 months and this year, it is at 10 months. For the smaller apartments, the absorption rate remained the same, only experiencing a slight increment.
The prices have increased and the buyers have had their complaints. For that, the developers in New York, like Jody L Kriss, are attempting to flatten the prices a bit. The competition of the buyers for the lower-priced apartments has increased. The median price for the smaller apartments has increased by around 2% to $450,000. The one-bedroom is at $729,000 while the 2-bedroom units are rated at $1.45 million.