CORE Quarterly Q4 2017

2017 WAS A GREAT YEAR…IF YOU WERE A BUYER. Not so much if you were trying to sell your apartment. For the first time in two years, the average price of an apartment in Manhattan dropped below $2 million. The majority of the available inventory that did sell were one and two bedroom apartments, while large, expensive units sat on the market and continued to see several price cuts before reaching a sale. The market moved slower than typical throughout 2017, and homes sold for an average of about 7% below asking price across the board.

Has the market reset? If the uptick in activity from November and December is any sign, then the answer is yes. The luxury side of the market saw a significant increase in buyer activity towards the end of the year. We anticipate a strong first quarter of 2018 as inventory continues to tighten and buyer confidence continues to rise.