Prudential Douglas Elliman Releases 10-Year Manhattan Townhouse Report

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Price Indicators Set Records, Number of Sales Dropped Sharply

(NEW YORK, NY) -- New records reached for all price indicators. The annual median sales price of a Manhattan  townhouse was a record $4,995,000 this quarter,  up 59.8% from the prior year median sales price of $3,125,000. Average sales price showed the same pattern, rising 58.3% to a record $7,372,987 from $4,658,155 over the prior year. Price per square foot reached a record this year, up 42% to $1,615 from $1,137 per square foot in the prior year. The sharp rise in price trends was due to price growth of the luxury market as well as the east side, which has a high concentration of luxury properties.

Listing inventory declined as the number of sales increased. There were 530 townhouses in listing inventory at the end of 2008, up 15.2% from 460 townhouses listed at the end of 2007. The average annual level of inventory for the past decade has been 486 units and the increase in the current level is attributable to the decline in the level of sales activity. There were 151 1-5 family townhouse sales in 2008, off 56% from the prior year total of 343 properties. The expansion of inventory and decline in the number of sales is consistent with increased negotiability and longer marketing times as listings have more competition. The listing discount for a Manhattan townhouse increased sharply to 8.7% in 2008 from 3.9% in 2007 as days on market expanded to 155 days from 145 days in 2007.  



East side Market
All price indicators set records as number of sales declined

Price indicators continued to set records. The median sales price reached a record $9,441,350 in 2008, 35.2% above the $6,985,000 record median sales price set in the prior year. Average sales price followed a similar pattern, reaching a record of $13,284,874 this year, 36.9% higher than the record $9,702,884 set in 2007. Price per square foot exceeded the $2,000 threshold for the first time reaching $2,231 per square foot, 24.4% above the $1,793 per square foot record set in 2007. The average house size was 5,955 square feet with 21.9 feet of frontage, 10% larger than the 5,412 square feet and more than a foot wider than the 20.8 feet of frontage in 2007.

Number of sales declined as listing discount expanded. There were 50 townhouse sales in this market, 30.6% less than the 72 sales in 2007, but represented the most active region in 2008 based on number of units sold. Over the past decade, this market region averaged 69 sales per year. The region represents 33.1% of all townhouse sales in Manhattan, but 59.7% of total market volume due to its higher price point than all other areas. The average listing discount was 8% in 2008, up from 4.3% in the prior year and above the 5% average over the recent decade. The days on market was 151 days, up modestly from 146 days in the prior year and the 144 day annual average of the prior decade.  



West Side Market
Prices indicators mixed as number of sales declined

Price indicators showed gains as average size declined. The median sales price of a west side townhouse was $5,240,000 in 2008, up 11.5% from the prior year median sales price of $4,700,250. The average sales price, however showed a modest decline, largely due to the drop in the average size of a property sold during the year. The average square footage was 4,251, a 13.5% drop in size. This was also reflected in the frontage of properties that sold during 2008, averaging 18.1 feet, a foot narrower than the 19.2 foot average of 2007. The average sales price was $5,428,800 in 2008, down 2.3% from $5,556,050 in 2007 and the first year over year decline since 2003. The average price per  square foot in the region was $1,277, up 13% from $1,130 per square foot average and the second consecutive year this indicator has remained above the $1,000 threshold.

Number of sales dropped, days on market remained stable. The region saw 16 sales in the current year, down 57.9% from the 38 sales of the prior year and was the lowest total number of annual sales over the past decade. The lower level of sales was reflected in the rise in listing discount, but not in the average days on market. The listing discount for the year was 7.4%, up sharply from 4% in 2007, reflecting the lower level of sales activity. However, the average days on market did not expand significantly, rising 2 days to 150 days from 148 days in 2007. 



Downtown Market
Price indicators rose as number of sales declined

Price indicators continued to set records. The median sales price was a record $5,000,000 in 2008, 16.3% higher than the prior year record median sales price of $4,300,000. Average sales price reached a record $6,349,491 in 2008, 8.1% higher than the $5,872,851 record set in 2007 and the fifth consecutive year of gains for this metric. Price per square foot followed the same pattern, rising 2.2% to a record $1,504 from $1,472 per square foot, second only to the east side. The average size of a downtown townhouse was 4,222 square feet, 5.8% larger than the 3,990 square foot average of 2007. The square feet of frontage was essentially unchanged over the same period with an average of 21.6 feet versus 21.5 feet in 2007.

Number of sales jumped as listing discount edged higher. The downtown region saw 49 sales in 2008, down 40.2% from the 82 units that sold in 2007, but represented 32.5% of all sales for the period up sharply from 23.9% in 2007. The 2008 sales were 27.9% of total market volume, down from 30.1% market volume in 2007. The listing discount for 2008 was 8.6%, up sharply from the 3.8% listing discount of 2007 consistent with the lower number of sales over the same period. Days on market saw a modest uptick to 158 days, from 150 days in the prior year. 



Uptown Market
Price indicators mixed as number of sales dropped

Price indicators showed wide range of variation. While the average sales price and price per square foot showed modest growth, the median sales price fell sharply, reflecting a significant change in the housing stock that sold. Average sales price reached a record $1,419,208 in 2008, 3.8% higher than the $1,367,124 record in 2007. Price per square foot reached a record $437, 6.1% above the prior year record of $412 per square foot. However, median sales dropped sharply over the same period. The median sales price in 2008 was $997,500, down 26.1% from the prior year median sales price of $1,350,000. The drop was unusual since the average size did not see a large change over the same period. The average size of a sale in the region was 3,248 square feet, down a modest 2.1% from 3,318 square feet in 2007.

Number of sales dropped sharply. The number of transactions declined by 76.2% in 2008 to 36 properties, from 151 sales in 2007. In the preceding 2 years the level of activity was at record levels as a growing number of townhouse purchasers were being priced out of the Manhattan market regions to the south. Market share based on number of units dropped by nearly half to 23.8% of all sales from 44% in 2007. The listing discount jumped to 10.2% from 3.5% consistent with the sharp decline in the number of sales. Days on market increased to 160 days, up from 140 days in 2007, also consistent with the lower level of sales activity.



Luxury Market Prices Up Sharply

Price indicators set records. The average sales price of the top ten percent of all townhouse sales was a record $28,067,633, up 57.1% from the $17,862,941 in 2007. Median sales price saw an even larger jump and was higher than average sales price reflecting the shift in the mix within the luxury sector toward larger properties. The median sales price was $31,789,500, up 112% or more than double the $14,997,500 median sales price of 2007. Price per square foot was just under the $3,000 per square foot threshold, but reaching a record $2,960 per square foot, up 36.4% from the $2,170 per square foot in 2007. Over the past year, the average size of all sales increased 15.2% to 9,482 square feet and the average frontage was 29.9 feet, up from 26 feet.  



Multi-family Prices Set Records, Number of Sales Declined

Price indicators reached records, largest gains in 3-5 family properties. All property types: 1-family, 2-family and 3-5 family showed significant increases in prices over the same period last year. More gains on a percentage basis were seen within townhouses with more units. The average sales price and year over year gains in 1-family properties were $10,525,875, up 44.7%; 2-family properties were $6,035,515, up 60.1%; 3-5 family properties were $5,948,755, up 90.6%. Median sales price and price per square foot also saw sharp increases and progressively larger gains for property types with more units. The pattern reflected the greater premium required for units to be converted to 1- family use.

Number of sales dropped. All three property types showed declines in the number of sales compared to the prior year; a 59.6% decline in 1-family sales to 46 units from 114 units; a 37.3% decline in 2-family sales to 52 units from 83 units; a 63.7% decline in 3-5 family sales to 53 units from 146 units. The 1-family property segment accounted for 30.5% of all townhouse sales in 2008 with the 69.5% remainder attributable to 2-5 family properties. The 1-family market share was much larger at 47.9% a decade ago versus a 52.1% market share for 2-5 family properties. The rising market share of multi-family properties was reflective of growing interest in conversion to 1-family status.


 

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