2023 Q1 New York City Townhouse Report

While transaction volume and activity in the Manhattan townhouse market has decreased by roughly 30% compared to the incredibly busy first quarter of 2022, pricing was strong, with both the average sale price and the average price per square foot (PPSF) increasing by about 9%. The decline in volume speaks to the expectation gap between buyers and sellers, with buyers expecting pricing discounts and sellers holding firm on where they will transact. The high pricing also reinforces that demand for move-in ready townhouses continues to be strong as rising construction costs and lengthy timelines are still a deterrent for product which requires some level of renovation. Some banner sales this quarter include a Carnegie Hill mansion at 113 East 90th Street which sold for $25.5M and $4,612/ft, a record breaking number for the neighborhood, and 252 West 12th Street which sold for $23.14M and $4,747/ft. Though much of 1Q2023 was defined by a drop in volume due to questions around the economy, we are now seeing that unemployment is low, inflation is falling, and banks over performed despite an uncertain couple of months. We expect an increase in volume to characterize 2Q2023 as we enter what is typically one of the busier selling seasons.