Manhattan Sales Reach Second Highest in 25 Years

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The total number of co-op and condo sales in Manhattan reached the second highest level in 25 years, according to a new data.

The market has endured four years of stable activity with sales just over 10,000. In 2013, sales jumped 21.2 percent to 12,735 from the previous year, according to a report from Douglas Elliman Real Estate, using data from Miller Samuel Inc. 

The highest sales total reached in the last 25 years was 13,430 in 2007. 

"We saw a significant release of pent-up demand from the preceding several years, culminating in the fiscal cliff at the end of 2012," Jonathan Miller, chief executive of Miller Samuel, told WPC News. "We had a lot of people that were on the fence enter the market, either to trade up or enter the market [in 2013] as first-time buyers." 

Sales numbers were accelerated as mortgage rates spiked in late spring last year when the Federal government miscommunicated its tapering message, leading to do the heaviest third and fourth quarter sales volumes in history, Mr. Miller said.

At the same time, inventory fell 12.3 percent to 4,164 from 2012. With rising sales, monthly absorption rate fell to 3.9 months, the fastest market pace in 14 years. 

Despite the near-record sales volume and low inventory, sales prices recorded modest gains as credit remains tight, the report states. The median sales price increased 2.4 percent to $855,000 in 2013. The average price per square foot increased 4.6 percent to $1,136 year-over-year. 

The Manhattan townhouse report showed similar trends for 2013 sales. 

The number of sales increased 17.7 percent to 326 from a year earlier. The market inventory fell 16.5 percent to 343 units, marking the fastest moving market in 17 years, according to the data. 

However, the median sales price for townhouses recorded similar modest gains, increasing 2.6 percent to $3,591,250 in 2013.