The Manhattan real estate trends that were heating up in 2013 are spilling over into 2014 as the industry nears the end of the third quarter.
In 2013 Manhattan real estate was fueled by increasing prices and a quickly turning inventory. New listings hit the Manhattan real estate market rapidly, especially in the 4th quarter of 2013. In addition, listings were on the market for a shorter time period, averaging around 3 months. 2014 is continuing to see rapid changes in Manhattan real estate trends.
Driven by low inventory, Manhattan real estate prices continue to soar. Bidding wars where sellers are seeing offers over the listing price are not uncommon. But when it comes to inventory, the luxury market in Manhattan real estate has shown the most price gains due to new development projects, mainly with new luxury condos coming on the market rapidly in 2014. In turn the rise of luxury condos and their prices has helped the co-op market to rebound as some consumers will seek out affordability within the Manhattan real estate market. Proof of the uptick in Manhattan real estate is the number of sales that closed at or above list price rising to 45.9%, the highest it has been since 2008.
Across the board, when it comes to co-ops and condos, prices are moving higher and the time on the market is dropping to less than three months. Co-ops in general have seen a sharp rise in price as inventory has decreased and also have seen less time on the market. Condos have risen in inventory but their marketing time has expanded, unlike co-ops. The luxury market has seen positive trends in the Manhattan real estate market. A strong double digit price increase and a sharp rise in inventory are two hallmarks being seen in this market sector.
Lasting, when it comes to new development prices are seen a large gains, a strong rise in inventory and the beginning of larger units selling and closing.
The Manhattan real estate market reports a very active second quarter for 2014 with sales higher than at the same time in 2013.Inventory is on the rise but a supply of apartments for sale remains low regardless. With sales rising for a straight two years and the co-op market picking up strength. 2014 looks to be a promising year for Manhattan real estate. Factors that contribute to the overall active 2014 Manhattan real estate market can be said to be an improving economy, low mortgage rates and the demand of international buyers looking to invest in Manhattan real estate.
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