Manhattan Home Prices Starting To Set New Records

While the Big Apple keeps enticing people from all over the globe with its vibrancy, richness of urban and cultural scene, and sense of excitement – living here, and especially in Manhattan, seems to come with a very high price.

While some people thought living in Manhattan was going to get cheaper, according to the brokerage Elliman’s latest market report – it’s not.

The report shows that sales prices in the Manhattan borough hit an all-time high in the fourth quarter of 2015. Not only did the median sales price go up, but also the average sales price and average price per square foot broke records, too.

So, the average home price in Manhattan has reached the mighty number of $1,948,220.

This is a 12% increase over last quarter, and a 12% increase over the same time last year.

The median price of all completed co-op and condominium purchases hit $1,150,000, a 17% increase from a year earlier, and a number that real estate experts say has not been this high in the last 27 years. The rising costs were seen for condos, co-ops, and luxury developments.

For co-op resale in Manhattan, the median price was $810,000, up 8% from a year.

Other real-estate companies confirmed these extremely high numbers. Per Compass, record-setting Manhattan real estate prices were recorded in Downtown, Upper West Side, Midtown East, and Midtown West neighborhoods.

So, what’s the cause of this real estate trend?

Per Elliman, new developments have a record-breaking average price per square foot – $2,210. A joint report by Brown Harris Stevens and Halstead Property states that sales of new development account for 26 percent of all transactions in the last quarter.

Manhattan’s mega high price tag can be explained by one of the most basic concepts of economics – supply and demand. The real estate inventory of previously owned apartments is still low, as it rose by only one percent over the same time last year, while the demand increased, leading to these astronomical prices.

Since new developments tend to have fewer apartments, and since the demand for them remained the same, this means there are not enough units for everyone.

Now, closings on real estate in Manhattan are happening faster than ever. The average that properties remain on the market is around 82 days, which is a 20-day decrease from the same time last year.

So, it seems that the prices of Manhattan homes keep climbing. With the big-name, high-price developments expected to hit the market during 2016, that trend is likely to continue.

Whether you are looking to move into one of the high priced NYC properties or need a more affordable home – rely on a trusted and experienced real estate attorney to protect your assets and your rights as they help you navigate through complex real estate transactions.

The Levin Law Group’s experienced, proficient real estate lawyers can assist individuals and business entities in a broad spectrum of residential and commercial real estate transactions throughout New York State.

Contact our real estate attorneys in NYC and other nearby areas today.