Dear Clients and Friends,
For this edition of the Novack Team Update we’ll be focusing on the state of market as we assess 2019 and look forward to the year ahead…
- The number of sales declined by 1.2% in 4Q19 vs. the same period in 2018, the smallest decrease since 2017 when the overall pricing correction began. This trend underscored a flattening in the residential market’s downward trajectory, with more ‘real’ sellers listing at achievable levels and buyers coming off the sidelines after several consecutive quarters with little urgency to transact.
- Interestingly, the number of sales for properties priced below $5 million actually increased by 1.6% year-over-year, signaling that the greatest softness was in the ultra-luxury market.
- The under $3 million category made up 89% of total sales in 4Q19 – a 2% increase from the prior quarter. The average price of these properties was up 4% vs. 4Q18, while market pricing as a whole decreased 11% year-over-year, primarily driven by significant declines in the higher price points.
- In a marked evolution, January 2020 experienced record activity in the luxury market (properties priced $4M+), which saw a total of 26 contracts signed for $231.7 million in a single week. This represented the highest number of contracts signed since the prior November and the highest dollar volume since the previous June.
- Pricing remained key and many of these properties traded at sharp declines from their original asking price. The average days on market across all 26 properties was 648 – a sign that sellers were finally adjusting their expectations, and buyers were making offers where they perceived value – particularly for unique high-quality homes
Please don’t hesitate to reach out to us with any questions, or on any of your real estate needs.
Alex and Sybille
New Listing: Triple Mint 8 Room 5th Avenue Prewar with Park Views