Almost every neighborhood saw the same pattern during the 1st quarter: transaction volume was relatively flat from 1Q2018, but dollar volume and average pricing were down. There were 105 transactions in 1Q2018 and 107 in 1Q2019, but the 2019 transactions translated into only $665M, a decline of 18% from the $816M generated through 1Q of 2018. While the average Price Per Square Foot (PPSF) was down only 4%, the average sales price declined by 20% and the median price was off 30% to $3.8M indicating that the size of properties bought so far this year were smaller than those purchased during 1Q 2018. In other words, while demand for townhouses and small buildings remains steady, purchasers have reduced their budgets and are thus on average buying more modest sized homes.
Notable sales this quarter include 11 East 82nd Street, a 25'-wide single-family townhouse that sold for $30M and $2,368/ft, 135 West 11th Street, a townhouse within the Greenwich Lane new development which sold for $21.9M and $3,129/ft, and 311-313 Second Avenue, a 24-unit rental building in Gramercy which sold for $18M and $1,123/ft. The highest priced sale overall was 710 Madison Avenue, a 20'-wide commercially zoned townhouse which sold for $66.5M and $7,917/ft. The property last sold in 2014 for $70M.
Looking forward, while buyer activity has been up recently with an increase in contract signings throughout the City, we'll be looking to see how much of an impact the new mansion has on the residential real estate market.On the multi-family front, buyers continue to keep a close watch on potential changes to rent regulation laws which will likely make it more difficultto increase rents on regulated units.
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