Because of rising prices and a dearth of listings, New York City homebuyers looking for an apartment in the million-dollar price range are becoming forced to make considerable concessions.
According to a report by Douglas Elliman, the median sale price for a Manhattan apartment is $972,428 in the first quarter of the year, up 18.5 percent from the same period a year ago.
That’s 5 percent below the peak of $1.025 million in the second quarter of 2008 — the only time the median has crossed the $1 million threshold.
The problem is that new supply isn’t growing fast enough to meet the demand for apartments priced at $1 million or less. Although they still make up the bulk of the Manhattan market, that piece has shrunk considerably.
About 52 percent of sales in Manhattan in the first quarter were below $1 million, compared with 60 percent for the same period a year ago, according to Jonathan Miller, author of Elliman’s report and president of Miller Samuel.
Comparatively, 71 percent of all Manhattan sales were below $1 million 10 years ago.
In the first quarter of the year, 4,692 apartments were for sale for $1 million or less, down about 20 percent from the same period last year, according to StreetEasy. Three years ago, 8,014 units were on the market for $1 million or less in the first quarter.
Compare all of this data to the national median sale price, which is $194,400, according to Zillow. [NYT] —TRD