Looking at the area stretching from the East, Central and West Village to the South and the Upper East Side and Upper West Side to the North, the prices of townhouses surged during the first half of 2014, with the average sales price up 37.5% from $6.8 million to $9.3 million and the average Price Per Square Foot (PPSF) improving by 13.9% from $1,184 to $1,349. At the same time transaction volume was down 22.7% from 211 to 163 sales, an indication of both tighter inventory and higher prices forcing some buyers out of the marketplace. The combination of higher prices and fewer deals led to an increase in total sales of 4.8% from $1.4 to $1.5 billion for the first half of the year.
The highest priced sale to date in 2014 occurred at the 8400 square, 20 foot wide, mixed-use townhouse located at 710 Madison Avenue on the corner 63rd Street which sold for $70.0 million and $8,333/ft. On the residential side, the highest priced sale occurred at the single-family home located at 115 East 70th Street for $51.0 million and $3,290/ft., while the priciest residential sale on a PPSF basis took place at 228 West 11th Street for $4,820/ft. and $19.3 million.
The Upper East Side continued to command the highest sales prices during the 1st half of 2014, with an average price of $12.0 million and an average PPSF of $1,763. The West Village had the highest average PPSF at an impressive $2,149/ft. to go along with an average sales price of $10.9 million.
Looking forward to the balance of 2014, time on the market for townhouses is increasing as asking prices continue to rise throughout Manhattan. Absent any significant geo-political events, and with a diverse pool of domestic and international buyers to draw on from a wide range of industries, the Manhattan market should continue to remain strong, with the rate of appreciation slowing as we close out the year.