H OUSING N EWS R EPORT
UrbanDigs.com, a real estate analytics firm in New York City. “If you are a seller in the $3 million and under marketplace, you may not have felt anything other than seasonal or property specific weaknesses.” In New York City, domestic buyers are driving the co-op market while the weakening condo market is largely dominated by foreign buyers, according to Jonathan J. Miller, president and CEO of Miller Samuel Inc., a real estate appraisal and consulting firm in New York City. The average apartment sales price in Manhattan hit a record $2 million in the first quarter of 2016, up 18.4 percent from a year ago, according to the latest Miller Samuel report for Douglas Elliman Real Estate. Miller said a bit of a chill has set in the New York City residential real estate market. Miller said the high-end luxury market is small sliver of the overall market. He said “chronically low inventory” was pushing prices higher.
“New sales are 10 to 15 percent of the market,” said Miller, referring to the supertall skyscrapers around Midtown on the West 57th Street corridor known as Billionaires’ Row, plus the cluster of towers in the financial district and downtown. “It’s a lot more interesting to write about the sale of a $100 million apartment than a $2 million condo.” Miller said the pace of demand on the upper end has slowed while the entry level is in high demand. “There’s plenty of supply at the top but lower supply at the re- sale end,” Miller said. According to Real Estate Weekly , Manhattan’s skyline is filled with 70 construction cranes building high rise residential developments. This construction boom is confirmed by Census Bureau data. In 2014, New York developers were issued 47,984 building permits. Last year, at more than 86,400 new building Continued Next Page Condo Glut: Too Much Supply, Waning Demand
SOURCE: U.S. Census Bureau
An areial view of supertall residential condo tower 111 West 57th Street (center) in midtown Manhattan in New York City overlooking Central Park. The developer has postponed sales on the 1,427-foot tower because a lack of demand.
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