Since June of this year, I’ve been tracking and recording the bid-ask spread for Upper West Side townhouses. The bid-ask spread represents the percentage difference between the current average list price and average sales price. To collect the data, I calculated the mean of every townhouse sale recorded to date in 2017 on the Upper West Side, as well as the average ask price for townhouses currently on the market on the Upper West Side. The percentage difference between the two averages represents the spread.

As evidenced by the graph above, the spread has been slowly increasing as the summer progresses. While it’s true this is an indication of typical summer seasonality, it also is a reflection of two lower priced multifamily sales in July, which affected the average sales price and, in turn, widened the spread.

Bid-ask spread is an indicator of market strength. The tighter the spread, the stronger the market. Follow me on social media for monthly bid-ask spread updates to stay in the know on the Upper West Side townhouse market.