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2015 Has Been Inconsistency-Filled Year for NYC Real Estate

Posted by Jereco O. Paloma on Dec 30, 2015 09:05 AM EST
Exteriors Of E'Dena Hines' Apartment Building In New York City more big
NEW YORK, NY - AUGUST 17: A view of E'Dena Hines' apartment building in the Washington Heights neighborhood on August 17, 2015 in New York City. E'Dena Hines, granddaughter of Morgan Freeman, was reportedly stabbed outside of the building on August 16, 2015 and later passed away from the injuries she sustained. (Photo : Rob Kim/Getty Images)

For many, the year 2015 has been filled with inconsistencies in New York City's housing sector, a report showed.

According to a report published by POLITICO New York, the city saw a lot of fluctuations on the market that that have left a mark on its stakeholders. For example, the median apartment price in downtown Manhattan surpassed the $1 million mark while the city's homeless population increased.

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The report also noted that Manhattan's overall real estate market boomed, thanks to the property development tax holiday imposed by the city government. On the other hand, Manhattan also saw its increasing level of housing vacancy rate reach a nine-year high.

The year 2015 has been a good year for Manhattan's posh real estate market where it recorded a staggering $100.47 million in sales for a single luxury property in midtown Manhattan. However, as the year-end drew nearer, a problem with flat sales started to hit the market.

The inconsistencies were evidenced in the recent Olshan Luxury Market Report released just this week, a few days before the year ends. In the report, it showed that the high-end property market is one of the worst hit segments in New York's property sector.

"In the last four months, there have been only four strong weeks with 30 or more contracts signed—three weeks in November and one week in December. Also the number of contracts signed at $10 million and above dropped 16 percent over 2014. You read that right—it took two months longer to sell a luxury property in 2015," the Olshan report noted, as quoted by POLITICO New York.

Across Manhattan, a total of 1,344 transactions were recorded involving sales of houses and apartments. The total amount of the deals was pegged at least $4 million. In 2014, Manhattan saw a total of 1,340 transactions and 1,372 in 2013.

A separate report from the Wall Street Journal showed that rents are slightly down in Manhattan, while the vacancy rate hit a 6-year low.

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