NEW YORK, Jan. 16, 2019 /PRNewswire/ -- Stribling & Associates, a premier New York residential brokerage, today releases the second half 2018 townhouse sales report. The report, which covers 1-3 family home sales in Manhattan and Northwest Brooklyn, showcased a market with increasing inventory, an increase in contracts, but decline in sales as prices fell.
"The townhouse market in Manhattan continued to struggle in the second half of 2018," said Garrett Derderian, Director of Data & Reporting at Stribling. "Each market, with the exception of Downtown Manhattan, saw a reduction in sales over the same period last year."
The report highlighted 223 sales market-wide in the second half of 2018, 13% less than the prior year. "This is one of the greatest buyers' markets we have seen," Derderian reported. Despite the slowdown, the average sales price and median sales price both had slight increases, a result Derderian attributed to several high-priced outlier sales, sellers drastically reducing their asking prices, and a more robust market in Northwest Brooklyn where homes are more affordable.
The Upper East Side, while recording an outsized 48% drop in the number of sales, noted significant price increases. The average sales price ballooned 59% to $13,437,900 while the median sales price grew 9% to $9,000,000, a result of two high-priced sales above $30 million. The same period last year saw no sales exceeding $20 million on the Upper East Side.
To understand just how flexible sellers must be with pricing, Derderian pointed to the average discount for townhomes. "The average discount market-wide was 10%," he stated. "However, that number is largely due to a more competitive market in Northwest Brooklyn, where the discount was only 7%." According to the report, Northwest Brooklyn made up 63% of all townhouse sales in the second half of 2018, significantly influencing the overall figure.
"In Manhattan alone, the average discount was 14%, twice that of Northwest Brooklyn," Derderian emphasized. Several neighborhoods showed even steeper reductions. On the Upper West Side, a prominent townhouse market, the average discount was 23%. In Downtown Manhattan, the average discount was 15%. "The Upper West Side saw the most negotiability. Even with the vast discounts, the number of sales declined 18% from one year ago," Derderian stressed.
He pointed to contract activity for the most accurate picture of transactions that occurred within the second half of the year: "While we saw 32% more contracts signed than this time last year, prices were down considerably." The steepest price drops were in Midtown East, where the average price dropped 40% to $5,387,000 and the median price plunged 45% to $4,675,000. To showcase just how slow the market is, he said the average time it took these homes to enter contract increased 88% to 284 days. The slowest moving market was the Upper West Side, where homes spent an average of 347 days on the market.
Every market in Manhattan saw the average time properties spent on the market increase, and each market averaged more than 200 days. The bright spot was Northwest Brooklyn, the only area where the number of days a property was marketed decreased. Here, total time on market was down 14% to 134 days.
As to a look ahead, Derderian advised, "There is no question the housing market in New York City has slowed. Townhomes, often older and requiring more maintenance, are at a comparative disadvantage when comparing to new development condos at the same price point. Expect these price declines to continue as sellers adjust expectations to meet the market."
Highlights from Stribling & Associates 2H 2018 Townhouse Report:
- There were 521 townhomes on the market, up 33% from one year ago
- There were 243 properties in contract, a 32% yearly increase
- There were 223 home sales, down 13% year-over-year
- The average listing price fell 17% to $8,416,078
- The average sales price increased 13% to $5,035,552
- The average sales price was 40% less than the average listing price
- The median listing price fell 16% to $5,249,000
- The median sales price increased6% to $3,450,000
- The median sales price was 34% less than the median listing price
- Total days on market increased 11% to 187
- Listing dollar volume decreased 9% to $4.37 billion
- Sales volume decreased 2% to $1.12 billion
- The Upper East Side average sales price increased 59% to $13,437,900, and the median sale price grew 21% to $9,000,000
- Upper East Side saw recorded sales drop 48%
- The Upper West Side saw a 18% decrease in sales
- Upper West Side days on market increased 10% to 347 days, the most of any market
- Midtown East saw recorded sales drop 38%
- Midtown East days on market increased 88% to 284 days
- Downtown had 44% more home sales but a median price drop of 8% to $7,975,000
- Downtown had a 113% increase in contracts signed, but an 18% average price drop and 24% median price drop
- Upper Manhattan recorded 7% less contracts, but a median price increase of 6% to $2,950,000
- Upper Manhattan days on market increased 24% to 201 days
- Northwest Brooklyn saw a 14% decline in sales, but price increases across all metrics
- Northwest Brooklyn homes averaged 134 days on the market, down 14%
About Stribling & Associates
Stribling & Associates, Ltd. is a premier residential real estate firm with over 300 agents throughout five locations across Manhattan, Brooklyn, and Long Island City. As one of the most renowned brokerages in New York, Stribling uses its respected expertise in the current market to provide individualized services to both buyer and sellers. Stribling agents specialize in the sale of luxury townhouses and cooperative and condominium apartments. The company's philosophy is based on professional, personalized services coupled with exceptional knowledge of key residential market trends. Stribling Private Brokerage specializes in the discreet marketing of properties over $5 million and commands a prominent market share in that sector of Manhattan residential real estate. Through strategic partnerships with Miami's Cervera and international estate services firm Savills, Stribling's global reach extends to more than 700 offices worldwide.
Ashley Murphy, Director of Public Relations
SOURCE Stribling & Associates