DataMarkets & Economy

Condos taking control of Manhattan market share, report says

A flood of condos and new developments are helping support the borough
  • Median closing prices in Manhattan increased from the first quarter of 2015 to the second quarter of 2016 by 35 percent.
  • Historically low inventory, pent-up demand, low interest rates, higher quality and an increasing share of condos to the market are all fueling the price growth in Manhattan.
  • Number of units and sales volume increased annually in the second quarter of 2016 over the same quarter last year.

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The Manhattan real estate market kicked off the year with a strong foot forward, according to Compass' recently released Q2 2016 Manhattan Market Report. Inventory and prices increased annually over last year by the end of the second quarter of 2016, and nearly all major markets and neigborhoods are progessing in the same direction, the report says. In the second quarter of 2016, Manhattan's median closing price was the highest reported on record, at $1.195 million. For the second quarter of the year, months of supply is rising and inventory has also increased. Overall, inventory grew 2 percent over the same time period last year. Sales volume also increased year-over-year in the second quarter of 2016,  from $31.05 billion to $33.03 billion. The biggest increases were reported in the $1 million-$3 million range, which upticked from 20.5 percent of sales volume in 2015 to 22.1 percent in 2016. The $10 million-$20 million price range also posted an increase to 17.1 percent...