According to fourth quarter market reports for 2015, the median price for Manhattan apartments reached record highs at $1.1 million. This lift in the luxury market is due to two key trends: The resale market offered quick sales to high demand in conjunction to a slowing of newly built homes.
Resales usually make up most activity and the inventory of resales for 2015 increased 20% over the past year. “As prices rise, more sellers are enticed to bring their properties onto the market,” noted Jonathan Miller of appraisal firm Miller Samuel.
While new developments are booming for 2016, the inventory in this market decreased by almost half last year. However the median prices increased 15% to a little over $2 million.
However, it is unclear how the new development market is truly doing because contracts for apartments close months and years after contracts are signed. For this reason, median prices for the fourth quarter could ultimately be a reflection of quarters past.
That being said, after a tumultuous end to 2015, 2016 is definitely on the upswing.