One figure shows Manhattan real-estate prices hit a 5-year low at the end of 2019 - and it means buyers are getting more bang for their buck
- Average price-per-square-foot in Manhattan dropped to $1,333 in the fourth quarter of 2019, the lowest since 2014, a Friday report from real-estate technology company Compass showed.
- The decline was driven by sales of larger apartments in 2019 compared to previous years, the report showed.
- At the same time, average sales prices rebounded after tumbling in the third quarter of 2019.
- This shows that "buyers are wielding their finances confidently again and moving ahead, albeit cautiously," said Rory Golod, New York regional president at Compass.
- Read more on Business Insider.
A key figure of real estate prices in Manhattan fell in the last quarter of the year to its lowest level since 2014, according to a report released Friday.
Average price-per-square-foot in Manhattan dropped to $1,333 in the fourth quarter of 2019, falling nearly 2% from the previous quarter and roughly 8% from a year earlier, a report by Compass, a real-estate technology company, showed.
Larger apartments drove the decline, as units sold in the most prevalent $1 million to $3 million price range were about 5% larger in the fourth quarter than last year, according to the report. The increased size of apartment sold pushed price-per-square-foot down by 2%.
"For buyers there's a better opportunity now in the market to have more negotiability and flexibility," Rory Golod, New York regional president at Compass, told Markets Insider in an interview. The discount rate rose to 10% in the fourth quarter from 2% a year earlier, showing that buyers can be more aggressive, Golod said.
In addition, total sales rose 1% in the quarter, inventory is lower, mortgage rates are steady, and the average time on the market is the highest since 2011, according to Golod. This backdrop shows that "after the complicated start to 2019, buyers are wielding their finances confidently again and moving ahead, albeit cautiously," he said.
Still, the report showed signs of life in the Manhattan real estate market for sellers as well as buyers as it normalizes, Golod said.
Average sale prices rose in the last quarter of 2019 to $1.9 million, rebounding after falling 31% to less than $1.6 million in October 2019, according to the report. Even at the 2019 yearly low, average prices are up nearly 15% from a decade ago, showing that the Manhattan market has grown in the last 10 years.
That "doesn't indicate a market that's in trouble," Golod said.