market reports

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REPORT Highlights of the Quarterly Survey of Co-op & Condo Sales

MANHATTAN SALES

2Q2014

Manhattan housing prices continued to press higher, driven by low inventory and seven consecutive quarters of year-over-year sales growth.

Manhattan median sales price increased 5.2% to $910,000 from the prior year quarter. Much of the gain came from the co-op market, which comprised 59.5% of sales and a 9% rise in median sales price.

The number of sales that closed at or above the list price at time of contract was 45.9%, the highest level reached since 51.6% in the third quarter of 2008. Although the number of

sales increased 6.3% from the prior year quarter for the seventh consecutive quarter, the increase was well below the 27.6% average growth of the past 4 quarters.

The easing rate of sales growth, along with rising prices, has allowed inventory to expand. Inventory expanded 18% to 5,659 from the prior year quarter with the gain largely attributable to the condo market.

Listing discount, the percentage difference between the list price at time of sale and the sales price, was essentially unchanged at 2.8% from the prior year quarter.

Days on market, the number of days from the last price change to the contract date, fell by roughly half to 96 days from the prior year quarter as languishing listings were sold off.

*The pending sale and pending price indices are based on contract data collected during the normal course of business by Miller Samuel and Douglas Elliman.

Manhattan Market Matrix 2Q–2014 %Chg (qtr) 1Q–2014 %Chg (yr) 2Q–2013Average Sales Price $1,680,185 -5.3% $1,773,523 17.9% $1,425,403Average Price per Sq Ft $1,268 -7.0% $1,363 10.4% $1,149Median Sales Price $910,000 -6.4% $972,428 5.2% $865,000

New Development $1,580,000 -8.7% $1,731,025 13.3% $1,395,000Re-sale $890,000 -1.1% $900,000 6.3% $837,500

Number of Sales 3,342 1.1% 3,307 6.3% 3,144Days on Market (From Last List Date) 96 -16.5% 115 -46.1% 178Listing Discount (From Last List Price) 2.8% 2.6% 2.7%Listing Inventory 5,659 13.9% 4,968 18.0% 4,795Absorption Rate (mos) 5.1 13.3% 4.5 10.9% 4.6Pending Price Index (1Q 08 = 100) 123.23 18.1% 104.32 20.5% 102.26Pending Sales Index (1Q 08 = 100) 112.39 6.7% 105.31 -25.9% 151.58Year-to-Date 2Q–2014 %Chg (qtr) 1Q–2014 %Chg (yr) 2Q–2013Average Sales Price (YTD) $1,726,608 N/A N/A 23.8% $1,394,417Average Price per Sq Ft (YTD) $1,315 N/A N/A 16.5% $1,129Median Sales Price (YTD $935,750 N/A N/A 10.6% $846,000Number of Sales (YTD) 6,649 N/A N/A 18.7% 5,601

Number sales reached second highest level in 25 years as listing inventory fell to a 14-year low.

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Highlights of the Decade Survey of Co-op & Condo SalesManhattan DecaDe 2004-2013

Manhattan Market Matrix 2013 % Chg (yr) 2012 % Chg (decade) 2004

Average Sales Price $1,443,753 1.9% $1,417,080 43.8% $1,004,232

Average Price Per Sq Ft $1,136 4.6% $1,086 48.1% $767

Median Sales Price $855,000 2.4% $835,000 41.1% $605,859

Number of Sales 12,735 21.2% 10,508 47.2% 8,653

Average Days on Market 121 -29.7% 172 18.6% 102

Average Discount from List Price 3.0% 5.6% 1.7%

Listing Inventory 4,164 -12.3% 4,749 -15.5% 4,925

30 Year Fixed Mortgage (Freddie Mac) 4.48% 3.35% 5.81%

1 Year Adjustable Rate Mortgage (Freddie Mac) 2.56% 2.56% 4.18%

After 4 remarkably stable years with activity hovering just over the 10,000 sale threshold,

the number of sales jumped 21.2% to 12,735 from the prior year level to the second

highest total in 25 years. A record of 13,430 sales was set in 2007.

Median sales price edged up 2.4% to $855,000 from the prior year.

Average sales price increased 1.9% to $1,443,753 and average price

per square foot rose 4.6% to $1,136 respectively year-over-year.

Listing inventory fell 12.3% to 4,164, from prior year levels to a 14-year low.

Days on market, the number of days from the last price change

to the contract date, fell 29.7% to 121 from the prior year.

Listing discount, the percentage difference between the list price at

time of contract and the sales price, fell to 3% from 5.6% in 2012.

The median sales price of a Brooklyn residential property increased 4.5% to a record $575,000 from the same period last year. Median sales price is now 6.5% above the $540,000 market

peak reached in the third quarter of 2007 before the 2008 Lehman “tipping point.”

The absorption rate, the number of months to sell all inventory at the current pace of sales, accelerated to 6.4 months from 7.6 months in the prior year quarter. There were 2,086 sales in the second quarter,

12.5% more than the prior year quarter, while listing inventory declined 5.9% to 4,426.

The luxury market, the highest 10% of closed sales by price for the quarter, saw larger year-over-year gains than the overall market. Median sales price increased 29.6% to a $2,138,325 from the prior year

quarter, the highest level reached in the 8 years this metric was tracked.

Days on market, the average number of days between the last list price change to the contract date, declined 25.3% to 109 days from the same period last year.

Listing discount, the percentage difference between the list price at time of sale and the sales price, remained at a nominal level, rising to 1% from 0.1% over the same period.

Brooklyn Market Matrix 2Q–2014 %Chg (qtr) 1Q–2014 %Chg (yr) 2Q–2013

Average Sales Price $783,296 15.0% $681,182 16.6% $671,964

Median Sales Price $575,000 10.6% $520,000 4.5% $550,000

Number of Sales 2,086 32.7% 1,572 12.5% 1,855

Days on Market (From Last List Date) 109 -16.8% 131 -25.3% 146

Listing Discount (From Last List Price) 1.0% 1.1% 0.1%

Listing Inventory 4,426 8.2% 4,092 -5.9% 4,704

Absorption Rate (mos) 6.4 -17.9% 7.8 -15.8% 7.6

Year-to-Date 2Q–2014 %Chg (qtr) 1Q–2014 %Chg (yr) 2Q–2013

Average Sales Price (ytd) $739,413 N/A N/A 13.0% $654,612

Median Sales Price (ytd) $555,000 N/A N/A 3.7% $535,000

Number of Sales (ytd) 3,658 N/A N/A 5.6% 3,463

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REPORT Highlights of the Quarterly Survey of Residential Sales

BROOKLYN SALES

2Q2014

Brooklyn housing prices continued to set new records, helped by rising sales and low inventory.

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Highlights of the Quarterly Survey of Residential SalesThe hampTons 1Q-2014

The market saw a rise in both sales and inventory as well as a shift towards a more typical mix of activity.

The Hamptons Market Matrix 1Q–2014 %Chg (QTr) 4Q–2013 %Chg (yr) 1Q–2013

Average Sales Price $1,708,925 8.5% $1,574,327 40.2% $1,218,594

Median Sales Price $880,000 14.2% $770,500 18.9% $740,000

Number of Sales 528 6.5% 496 52.2% 347

Days on Market (From Last List Date) 183 12.3% 163 -2.1% 187

Listing Discount (From Last List Price) 7.4% 7.9% 9.4%

Listing Inventory (Active) 1,696 8.1% 1,569 18.0% 1,437

Absorption Rate (Monthly, Active) 9.6 1.1% 9.5 -22.6% 12.4

year-to-Date 1Q–2014 %Chg (QTr) 4Q–2013 %Chg (yr) 1Q–2013

Average Sales Price $1,708,925 N/A N/A 40.2% $1,218,594

Median Sales Price $880,000 N/A N/A 18.9% $740,000

Number of Sales 528 N/A N/A 52.2% 347

Median sales price increased 18.9% to $880,000 from the prior year quarter. The prior year quarter immediately followed the expiration of the “fiscal cliff” as high-end buyers and sellers rushed to close before 2012. Average sales price surged 40.2% to $1,708,925 from the prior year quarter, as a result of the skew in activity towards the upper end of the market.

The number of sales returned to more typical levels, rising 52.2% to 528 from the same period last year. More heavily weighted with high-end sales, price indicators were skewed higher.

Listing inventory increased 18% over the same period to 1,696. As a result of the number of sales rising more quickly than listing inventory, the monthly absorption rate fell sharply. The absorption rate, the number of months to sell all listing inventory at the

current pace of sales, fell to 9.6 months, down from 12.4 months in the prior year quarter.

Listing discount, the percentage difference from the list price at the time of contract to the contract price fell to 7.4% from 9.4% in the prior year quarter.

Days on market, the average number of days from the last price change to the contract date, slipped 2.1% to 183 days.