The New Year has been rung in and 2015’s 4Q reports have confirmed the undeniable: Manhattan’s real estate prices are on the up. In Miller Samuel’s final Elliman Report for the old year, Manhattan housing prices set records as sales all around remained on the higher end. Over the 27-year data series, 4Q of 2015 marked the highest sales prices in the borough.
Average sales prices in Manhattan totaled to $1,948,221 in the final quarter of 2015, a 12 percent increase from the same quarter of the previous year, which accounted an average sales price of $1,740,158. Between 3Q and 4Q of 2015, there was a 12.1 percent increase in average sales prices with 3Q amounting to $1,737,565.
Overall median sales prices experienced a 17.3 percent increase in the year period between 4Q 2014 and 4Q 2015, from $980,000 to an astounding $1,150,000, the highest jump recorded since before 2008’s financial crisis. But even in 3Q of 2015, the median sales price still dwindled just below the $1 million mark at $998,000, detailing a 15.2 percent increase between 2015’s penultimate and ultimate quarters. Broken down, a 15.4 percent increase for new construction median sales prices was recorded between the final quarters of 2014 and 2015 from $1,785,000 to $2,059,411. (For luxury median sales prices, a 25 percent increase was recorded between the same timeframe to a total of $6,000,000.) In addition to luxury developments, condo and co-op median prices have also increased sizably.
Factors of surging prices include low inventory, new developments—whose average price per square foot has also increased—tend to have less apartments, and closings that are happening faster than ever before. Such examples, of course, tie into possibly the largest factor, an inability to meet the demands for more apartments.
With the new year just beginning, Manhattan real estate prices show no signs of slowing down, provided the evidence left at the end of 2015, nor does it seem that demand will let up any time soon. Brace yourselves, for 2016 may just break further records.