Real Estate News

New report examines last 10 years of New York luxury market

Published: 03 Feb 2017

The latest Elliman report from Douglas Elliman and Miller Samuel Inc. looked at the evolution of home prices in Manhattan since 2006. According to this source, the sales of luxury co-ops and condos reached their peak in 2007, before plummeting to less than $1,400 per square foot in 2009. Since then, the market mounted a slow comeback, though things have slumped somewhat since 2013.

Prices have increased during this time, but the years between 2009 and 2013 saw some back and forth, with home costs alternately rising and falling. The source found that the average sales price for one of these luxury properties in 2006 was nearly $4.6 million. In 2015, the number was closer to $7.3 million.

In a separate report, the same source tallied up similar figures for Manhattan townhouses. Compared to the luxury properties above, the downtown townhouses had a comparable 2006 average sales price ($4.6 million) but a significantly higher average price for 2015 (more than $9.4 million). The average price for each square foot of town house space in 2015 was $1,733, compared to $819 in 2006.

However, a related piece on these findings in The Real Deal noted that the townhouse market represented less than 3 percent of Manhattan home sales as a whole. In addition, Miller Samuel CEO Jonathan Miller said that the apartment market was expanding, at least in comparison to the more "niche" luxury market.

Overall figures for the entire country seem to have shown a favorable 2016 for sellers. The National Association of Home Builders said that the annual rate of new homes for sale jumped to 654,000 last July. The annual rate of existing homes sold also stayed at a relative high of 5.57 million for June and July, while inventory levels were at 2.12 million for June and unreported for July (as of this writing).