Lower Prices and Buyer Demand

The Corcoran Report Manhattan Market Snapshot
(survey of Corcoran's own signed contracts)

Manhattan listed available inventory has decreased 24% since its peak in March 2009 and is now just above 9,300 units. Available inventory is at its lowest level in almost two years. This number does not include “shadow”, or unlisted and unsold, new development units.

Prices are down sharply versus the peak about a year and a half ago. The median price of all properties (condos and co-ops) has decreased 22% from its peak in April 2008, falling from $972,500 to $755,000.

Median price per square foot experienced similar declines, falling 16% since May 2008, from $1,043 to $875. But since April 2009, prices have slowly increased by 5%, with the exception of small declines in August and September due to typical seasonality in the marketplace. The rebound in prices is due to increasing sales of large luxury and new development residences.

At the peak of the market in October 2007, 51% of deals were made at the asking price or above. In comparison, in October 2009 only 13% of deals were at or above the asking price. However, October 2009 is a slight improvement versus April 2009, when only 9% of deals were made at or above the asking price. Sellers’ expectations and buyers’ views on pricing are becoming more aligned.

Over the past year, sellers have become more realistic with their pricing which has closed the gap between the original listing price and last asking price. The largest price adjustments were for two bedroom and larger residences, with adjustments averaging between 9%-11% versus 15%-20% last October.

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