It is a bit of a strange market lately.  We are seeing bidding wars on Greenwich Village 5th floor walk-ups and luxury Park Avenue apartments going for weeks with no showings.  It seems the rich are a bit leary of moving in this economy, whereas first time buyers are taking advantage of the lower prices, low interest rates, and tax advantages.

Properties under $1,250,000 in Manhattan are moving briskly if priced well; it’s a bit slower under $2,000,000; and somewhat lethargic as prices go up.

What do I make of this?  Those with more faith in the economy are either younger or less wealthy.  There may be a correlation between Obama supporters vs. opponents going on here.

I reviewed the Second Quarter Report of residential real estate sales in Manhattan. My firm, The Corcoran Group, has released this report comparing data based on deals that closed in 2Q 2009 (April 1 through June 30) with that of 2Q 2008.

Due to the impact of the credit crisis and our nations recession there is a decline in sales activity and sale prices over the prior year.  2009’s Second Quarter posted 50% fewer closings over 2008’s.  The large amount of available properties along with low demand in the first part of the year has forced sellers to lower prices by 12-15%.  Therefore, buyers can negotiate much more and can snap up some of the best deals to be had in Manhattan in many years.

Spring is usually the busiest season and despite a slower market, the report shows greater sales activity in the Second Quarter than the First.  In fact June 2009 was even busier for our agents than the same month a year prior.

New developments showed decreased sale prices and slower activity as well. 67% fewer new development properties closed this quarter than in 2Q 2008, having an average drop of 14% in price per square foot.

If you would like to see this report in its entirety please contact me.

First Quarter stats are in for the Manhattan residential real estate market in 2009. Here is an overview taken from multiple sources:

• Over 10,000 apartments are available for sale, up 15% from previous quarter
• Sales declined 47.6% from same period last year
• 57.2% of sales for 1st Quarter were Re-sales, down 69.5% from same period 2008
• Median sales price of re-sale property fell 20.8% from prior year quarter
• Median sales of a new development rose to 31.4% from prior year quarter
• Average days on market rose to 170 days, previous year quarter was 146 days
• The average discount between asking price and sales price increased to 12.4% from prior year quarter

Fourth Quarter stats are in for the Manhattan residential real estate market in 2008. Here is an overview taken from multiple sources:

• Prices are down 20% from July of 2008
• Sales down 57% from same period in 2007
• Over 9,000 apartments are available for sale, up 3% from the previous quarter
• The average discount between asking price and sales price increased to 7.3% from 2.7% the year before
• Average days on market is 159 days, up from 131 days in the previous quarter