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Luxury real-estate prices in Manhattan have broken a new record during the 1st quarter. The average price of an apartment is a whopping $2 million, which makes it a new all-time high. On average, the price per square foot is around $1,700. Experts reporting that Manhattan’s luxury real-estate market is dying, seem to have either spoken too soon or overstated their predictions.
With that said, sales have definitely slacked off. The number of sales have grown around 8% in comparison to the same quarter just last year, they fell 3% in comparison to the 4th quarter of 2015. For the past 7 quarters, the number of sales have steadily fallen. Meanwhile, inventory listed grew 5% over the course of this year.
However, there are some housing experts that think the real estate market in Manhattan impressively held its own, given the fluctuating stock market and overseas growth that has slowed considerably. The high-end of the market, apartments costing $5 million or more, has gradually slowed. However, the main core of the market, apartments costing $1-5 million is still strong. The top of the luxury market is clearly slowing, but everything else remains in demand.
Closings for newly established developments almost doubled, elevating the overall prices higher. A good deal of these closings were for apartments that sold over a year ago for buildings that are only just now being finished. Inventory of new developments dropped 44% over the exact same period a year ago, despite concerns of an influx of new inventory coming into market.
Resale apartments, which consist of the majority of the market, is about 10% below in comparison to historical norms. Around half of these listings are going for the listing price or slightly above. The resale market is still troubled by limited inventory. Meanwhile, the most expensive apartment sold during this quarter was a five-bedroom, 7,000 square foot residence which costs $35.3 million. It’s located at 101 Central Park West.