3Q2019 marked one of the slowest quarters in terms of dollar and transaction volume since 2009, preceded by uncharacteristically high volume in 2Q2019. The 3Q slowdown is clearly attributable to the passage of Tenant Protection Act and increases in the mansion tax and transfer tax, as buyers and sellers sought to beat the increased transaction costs prior to the July 1, 2019 implementation date. Year-over-year, dollar volume through 3Q2019 was down 18%, and transaction volume was down 19%. However, pricing remains flat year-over-year with barely any change in both average sales price and average Price Per Square Foot (PPSF).
Notable sales this quarter include 18 East 73rd Street, a 23'-wide single-family home which sold for $27M and $2,679/ft, and 141 West 11th Street, a townhouse within the Greenwich Lane new development which sold for $19.995M.
With the irregular ups and downs of the 2nd and 3rd quarters behind us, we are seeing signs that the market is bouncing back or at least reaching an equilibrium between buyers and sellers, particularly on the residential side. In most neighborhoods, there were a healthy number of contract signings toward the end of 3Q2019. In addition, anecdotally, showings and general interest seems to be at a high point for the year and it is important to note that pricing has held up compared to 2018. However, on the commercial side, the multifamily market is experiencing a major shift due to the new rent laws. While the transaction volume of single-family homes is actually up 8% year-over-year, transaction volume of multifamily/commercial properties is down 30% from 3Q2018. It remains to be seen if the momentum in the residential market can be carried forward into 4Q2019 and 2020.
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