Since June 2017, we'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, we 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.
Since the peak spread in October, the bid-ask spread has been consistently tightening. This month, at 23.8%, the bid-ask spread is nearing the place it was when we started tracking it almost a year ago. Though the average sales price isn't changing much, the shift lies in a decreasing average ask price, indicating that asking prices are catching up with the market. This month, the average ask price fell under $10M for the first time since June 2017. This is due to an increase in price drops on properties that have been sitting on the market, as well as more accurate pricing on new properties overall.