Q2 is now behind us and it’s time to take a look at what it’s telling us. There’s nothing like diving into the data, itself, to complement anecdotal evidence and get a clear picture of the market.
So, here are some of the take-away sound bites from Elliman’s own 2nd Quarter Report:
- The average NYC sale hit yet another all-time record of $2.19 M – that’s a healthy margin over the $2 million mark that defines the average price for a NYC apartment … no small feat
- Strong sale prices were driven by two primary factors: more realistic sellers who have been adjusting to the new norm in the market, and the pent-up demand that we’ve seen from buyers either sitting on the sidelines or trying to buy to no avail during the past year
- The sheer volume of sales was the strongest in 7 quarters, driven by increased inventory and the fear of rising interest rates looming right around the corner
- Condos continued to fuel the rise of price-points, overall, and the entry-level market (as defined by the combination of size and price – studios and the sub $1 M price-point) continued to be strong and the arena for the greatest number of bidding wars. To that end, make no mistake about it, the sub $1 million market has been hot, hot, hot!
- The outlook for the upper end of the market has improved and will be stronger than we think this year, as resale inventory has dropped sharply
- Interestingly, the share of all-cash sales fell by 4% to 42%, the lowest since this metric began tracking 3 years ago. (Still, we’re always in awe that close to half of all sales are cash – keep this in mind when it comes to making an offer on a place you love.)
- New development prices nudged up over the past year, as did sales volumes, despite their lower share of overall sales volume, and despite the increase in both time on market and listing discount.
The bottom line for the last quarter is that buyers and sellers continue finding common ground. Sellers have adjusted to the new market reality, and prices have followed suit. We are in a far more sustainable phase of this market’s growth now. Buyers and sellers, both, can expect that focusing on the fundamentals will serve them well.
