NEW YORK, NY—The New York City condo market is a $4 billion market, a new report from Zillow released Monday shows.
The median price for a one-bedroom condo in Manhattan hit a new record high in May, up 7.5% over May 2016, Zillows research shows.
“Sales are growing so quickly in Manhattan that they have pushed up the median price to the highest level since June, and the median sales price for all condos has reached $4,971,000, up nearly 12% over the same period,” the report said.
“This new record pace of sales and growth will help to keep the city’s housing market afloat and provide a cushion for investors looking to cash in on the city-wide housing bubble.”
Zillow’s report is the latest indicator that the condo market continues to surge in New York.
In the first quarter of 2017, the number of sales for one-bedrooms reached a record level, surpassing the 5 million mark for the first time in a quarter, according to Zillovision.
However, the New York housing market remains fragile, with many apartments still being sold at the low end of market prices.
This week, the median home price in Manhattan increased 3.3% from May, a figure that has not changed in nearly two years.
Last month, Zilovision reported that a third of New York apartments were sold within the last year.
Zillerow, which measures real estate markets and is based in New Jersey, said that the market has experienced a major correction.
On average, sales in the Manhattan market fell 7.1% from the first six months of 2016 to the second quarter of this year, according the report.
Meanwhile, the citywide condo market rose 7.6% in the same quarter.
Despite the high price of a Manhattan home, Zillerow said the median sale price of an apartment in Manhattan was up 4.2% from last year, making it the most expensive in the country.
According to Zillerows research, the condo-market has remained resilient throughout the housing bubble and the ensuing recession, as new homes have been constructed on a near-record pace.
While the city has seen some modest recovery, the recovery is fragile.
According in Zillowitz’s report, sales of all units have fallen by 9.5 percent in Manhattan since last year’s peak.
That number is the largest decline since Zillsonomics began tracking condo sales in 1993.
Overall, the average price of one- and two-bedroom condos in Manhattan rose 2.5 and 3.2 percent over the first three months of 2017.
But the city still has a long way to go before it can be considered one of the safest markets in the nation.
Many of the condo buildings that have been built on Manhattan’s west side, including a new luxury condo complex in the Upper East Side, are at the bottom of the market.
As the New Yorker has been in a housing bubble for years, there is a lot of pent-up demand.
It is also difficult for investors to cash out of a city-bought home due to the low rates, Zills report said, citing the average selling price of condos for Manhattan was $3.7 million in the first half of 2017 and $4 million for a two-unit unit condo in the East Village.
At the same time, many New Yorkers are still renting out their homes.
Housing costs are a major issue in New Yorkers.
Average rents in Manhattan were $1,200 per month last year compared to $1.9 in New Orleans, according Zillers research.
Renters have been particularly impacted by the soaring costs of housing and are struggling to make ends meet, as prices for condos have risen over the past several years.
