However, the condo median price increase was driven primarily by sharp rises for sales of luxury units, new developments, and larger units. In addition, foreign buyer interest continues to drive high-end condo sales. High-end condo sales represent only about five percent of the market, however. Co-op sales, about 60 percent of the market, had a modest median price increase of 4.6 percent in 2013, reaching approximately $680,000. A modest increase in the mid-range market is probably good news, according to some observers. It suggests there’s no market “bubble” and price increases are sustainable.
While the coming year looks good for sellers, they should nevertheless be wary of setting an unrealistically high price for their property just because prices overall are climbing. If you’re putting an older property on the market or a smaller or non-luxury unit, it’s probably not reasonable to expect it to fetch a double-digit price increase. Buyers are looking at continued tight inventory in 2014. They’ll probably have to spend more time looking for what suits their needs and should be ready to move quickly when a good option becomes available.
Overall, 2013 was a great year for Manhattan real estate and we expect 2014 to continue the upswing. I’d be happy to discuss Manhattan’s real estate picture in greater detail. Please email me to set up an appointment. I would also welcome the opportunity to discuss your real estate needs and plans.
Crain’s New York Business: http://www.crainsnewyork.com/article/20140103/REAL_ESTATE/140109975
The Real Deal: http://therealdeal.com/blog/2014/01/03/manhattan-apartment-market-closes-out-crazy-year-with-record-smashing-quarter/
CNBC.com: http://www.cnbc.com/id/101308576
New York Times: http://www.nytimes.com/2014/01/03/nyregion/manhattan-real-estate-market-surging-at-years-end.html?_r=0
Reuters: http://www.reuters.com/article/2014/01/03/us-realestate-newyork-sales-idUSBREA020ML20140103
