In Manhattan, luxury apartment sales are on the rise, and that’s led to a glut of inventory, says real estate agent Paul Schaeffer.
In recent months, luxury apartments have surged, with an average of 1,500 condos and apartments sold a week.
That’s up from 300 a week last year.
And there’s no sign of a slowdown, says Schaeff.
There are still a few places that are underperforming, though, he says.
But overall, sales are up.
A total of 8,300 luxury apartments are available for sale in Manhattan.
That compares to a total of 6,500 units available last year, and 7,500 last year as a whole.
That represents an increase of more than 25%.
Still, it’s a problem.
The shortage of inventory is a real problem, said David B. Haggard, chairman of the New York City Real Estate Board.
Haggard says it’s difficult to get a sense of how many units are actually available because there are so many listings.
But he says the shortage is getting worse, with some apartments going empty in the last few months.
The average sale price is down $4,600, to $1.4 million.
The average sale rent is down by $3,200, to about $1,800 per month.
And the average sales price per square foot is down about 20%, to $464.
And it’s not just Manhattan that’s underperforming.
In Queens, apartments are up in price, but prices are not going up as fast.
That has led to an increase in empty apartments, said Haggart.
The median price of a luxury apartment in Queens is $1 million, up from $935,000 last year according to real estate data firm Zillow.
But it’s the priciest borough in the city, with the average price of $2.1 million.
The median sales price in Brooklyn is $2 million, down from $2,400 last year and $2 at the height of the bubble in 2009.
It’s all too clear that the demand for luxury units is on the decline.
“In the last year we’ve seen an average decline of 15% in Manhattan, and in Brooklyn, which is the densest city in the country, sales have been declining, too,” said Schaefeer.
He says the problem will only get worse.
He predicts prices will rise, but it’s going to be hard to keep pace.
The New York Times is a USA TODAY content partner offering financial news and commentary.
Its content is produced independently of USA TODAY.
Read or Share this story: http://usat.ly/2g4KJbV