Done Deals: Brown Harris Stevens Reports Impacted by Tax Law Changes in 2012, 1st Quarter Average Manhattan Apartment Price Fell 16% From 1st Quarter 2012

Tuesday, April 2, 2013

Brown Harris Stevens Reports Impacted by Tax Law Changes in 2012, 1st Quarter Average Manhattan Apartment Price Fell 16% From 1st Quarter 2012

Hall F. Wilkie

New York, NY, April 2, 2013 -- According to the 2013 first quarter Manhattan residential market report released today by Brown Harris Stevens, the average Manhattan apartment sale price of $1,252,081 was down 16% from the first quarter of 2012.

The median price, which measures the middle of the market and is less impacted by high-end sales, was down 5% to $780,000 over that same period. Although inventory is at low levels and there was a rush to close at the end of 2012, the number of closings was up 3% to 1,846 when compared to the first quarter of last year.

Cooperative apartments of all sizes saw lower average sales prices over the first quarter of 2012. The overall average price of $925,815 was 22% lower than during the first quarter last year with three-bedroom and larger co-ops posting the biggest decrease in average price, down 31% from a year ago.

“With many buyers, especially those on the high-end, rushing to close at the end of 2012, we experienced a significant decline in high-end closings. This quarter’s statistics were also impacted by the $88 million closing at 15 Central Park West one year ago,” said Hall F. Willkie, president of Brown Harris Stevens Residential Sales.

“As interest rates remain low, the local economy is strong, and with inventory of available apartments 30 percent below where it was a year ago, we continue to see a healthy level of activity with well-priced homes selling quickly.”

Report highlights include:

· The average time on the market until signed contract was 111 days, 14% less time than a year ago.

· On the East Side, all sized apartments saw a decrease in average sales price except studios.

· The average price on the West Side particularly for 3 bedroom and larger apartments was impacted by the $88 million sale in the first quarter of 2012 at 15 Central Park West.