Confidence or Confusion?
What have we seen since November 2016 and where are we going?
As the luxury market rebounded from a sluggish 2016, we saw the average and median apartment prices increase in the second quarter.
- Closings over $5 million were 41% higher than a year ago, as the pent-up demand for these apartments was released after the presidential election
- The market saw 23% more sales than in 2016’s second quarter, with 2,601 reported closings
- The average apartment price of $2,179,172 was 6% higher than a year ago
- The median price rose 10% to $1,205,000.
- Resale apartments showed the strongest growth, as their average price rose to $1,686,224, which is a 9% improvement from the first quarter of 2017
- While down from the previous quarter, the average new development price remained above $4 million for the fourth straight quarter
The luxury market stalled in 2016, as buyers were held back by the uncertainty of Brexit and the U.S. presidential election. But after the election in November, buyers returned to the market, leading to a sharp pickup in closings in the second quarter.
However, since the current administration has taken office, it appears confidence has dropped, and the temporary bump has now leveled off as recent contract signed activity has slowed in response to increased global turmoil.
It is unknown how the global turmoil will effect sales in a highly international city such as New York. The next six months should be watched closely.
The full version of the report can be found here.