NYC Condo Scene: Transactions Are Booming, New Unit Sales Are Lagging. How Does That Happen?

Transactions are booming while new unit sales are lagging.Ah, the New York City condo scene -- it's chaotic, but it does at least keep the New Construction Manhattan blog busy enough. Of late, you might've noticed a number of posts suggesting that the market for NYC condos is heating up after a long recession precipitated a buyer's market in Manhattan condominiums. What has been anecdotal for the past few months got a little bit more quantified thanks to a study by NYC real estate researchers Radar Logic which showed NYC condo transactions rising an astonishing 146 percent over the past year.The same study, though, indicates that sales of new construction condos have dipped 31 percent over the same period, with only new construction condo listings in the Financial District exhibiting anything like real strength. So, um, what does this mean? Well, the increase in Manhattan condo sales was due to a booming market for existing homes, which can mean anything from pre-war condos to your more general non-new construction condominiums. In general, the study actually shows more or less what you'd expect -- prices on NYC condos for sale declined more or less across the board between 2009 and 2010 (only condos on the Upper East Side and East Village apartments went up in price during that period), and the majority of Manhattan condos sold during the past year were in the $400,000 to $600,000 price range. What this means for people looking for Manhattan condos is twofold, but both folds are good: the first is that prices on Manhattan condos have continued to go down even as the economy has recovered. The other is that -- especially with stalled new condo construction projects increasingly stirring to life -- a new crop of new construction condos should at least keep prices low for awhile longer. In other words: happy hunting.

NYC Daily Real Estate Blog