MARKET RESEARCH
Manhattan is the most sought-after section of New York City. It is home to Wall Street, the United Nations, Times Square, the Madison Square Garden sports complex, some of the most famous museums in the world, the Broadway theatre district, and numerous restaurants with every type of cuisine imaginable. In Manhattan, real estate prices reflect this prominence in financial and cultural circles.
Since the 3rd Quarter of 2008, New York City’s housing market has faced some of its toughest challenges in twenty years. Manhattan has certainly felt the effects of the global financial crisis, with a number of swings in the real estate market being among the consequences. However, trends in recent months have shown signs that the market is stabilizing and that properties will move if not overpriced. This is reflective of the City’s relatively low inventory supply. Overall, 2011 is turning out to be a very active year for real estate transactions in the City.
What does this mean for you?
- If you are a buyer, it is prime time to purchase. Although inventory has somewhat stabilized, sellers will not be getting the prices they received before the market collapse in 2008. Still, average sales prices of apartments in the City overall, as well as in Manhattan specifically, have increased 4% since the 1st quarter of 2010. The deepest cuts have come in the smaller apartments, but the higher end of the market, with larger apartments, has seen a resurgence. With interest rates at lows no one can ever remember seeing, the purchase of an apartment in one of the world’s greatest cities is a no-brainer.
- In 2010, the Association of Foreign Investors in Real Estate ranked New York City the number one real estate investment in the United States, indeed the world. The real estate downturn has made New York apartments and townhouses an incredible value for those whose wealth is in euros, Japanese yen, British pounds, Brazilian reals and other foreign currencies.
- The City’s unsold housing supply has returned to typically low levels, indicating a healthy ratio of supply to demand. Some brokers have also experienced a recent uptick in the sales of high-end (over $10 million) properties. If you are a seller, it may be time to place your home on the market.
Below are some helpful statistics about current New York City residential real estate prices, as well as a breakdown of closing costs associated with buying co-ops and condos in the City.
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NEW YORK CITY (including Manhattan) – 4th QUARTER ‘11
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Condos |
Co-ops |
Average Sales Price |
$1,043,000 |
$663,000 |
● percent change from 3q11 |
-1% |
-13% |
Average Price Per Sq. Ft. |
$896 |
$676 |
● percent change from 3q11 |
-2% |
-4% |
MANHATTAN – 4th QUARTER ‘11
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Condos |
Co-ops |
Average Sales Price |
$1,498,000 |
$1,049,000 |
● percent change from 3q11 |
-1% |
-9% |
Average Price Per Sq. Ft. |
$1,200 |
$982 |
● percent change from 3q11 |
1% |
1% |
Number of Sales |
964 |
1,298 |
● percent change from 3q11 |
-39% |
-30% |
BROOKLYN – 4th QUARTER ‘11
|
Condos |
Co-ops |
Average Sales Price |
$596,000 |
$358,000 |
● percent change from 3q11 |
-3% |
-9% |
Average Price Per Sq. Ft. |
$570 |
$440 |
● percent change from 3q11 |
-3% |
-13% |
Number of Sales |
522 |
424 |
● percent change from 3q11 |
-37% |
-20% |
MANHATTAN TOWNHOUSES
|
Townhouses |
Average Sales Price |
$3,784,000 |
● percent change from 3q11 |
-37% |
Average Price Per Sq. Ft. |
$1,155 |
● percent change from 3q11 |
-9% |
Number of Sales |
41 |
● percent change from 3q11 |
-24% |
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Townhouses |
Average Sales Price |
$582,000 |
● percent change from 3q11 |
-2% |
Average Price Per Sq. Ft. |
$323 |
● percent change from 3q11 |
-9% |
Number of Sales |
1,088 |
● percent change from 3q11 |
-15% |
Closing Costs for Manhattan
Listed below is general information concerning closing costs associated with the purchase of an apartment in Manhattan. The costs listed are meant to be general guidelines, not exact figures. Buyers and sellers should consult their personal attorney or financial advisor for more specific information.
Closing Costs of Condominiums
For the Purchaser |
Own Attorney |
Approx. $1,750+ |
Bank Attorney (if financing purchase) |
$500+ |
Bank Fees (if financing purchase) |
Points: 0% to 3% of loan amount |
Application, Credit Check, etc. |
$500+ |
Appraisal |
$275+ |
UCC-1 Filing |
$50+ |
Mortgage Tax |
1.75% of amount of mortgage for loans under $500,000
1.875% of amount of mortgage for loans more than $500,000 |
Fee Title Insurance |
Approx. $450 per $100,000 |
Mortgage Title Insurance |
Approx. $200 per $100,000 |
Short Term Interest |
One month (maximum) |
Tax Escrow |
2 to 6 months |
Recording Fees |
$200-$300 |
Municipal Search |
$275+ |
Managing Agent Fee |
$200-$500 |
Common Charge Adjustment |
Pro-rated for the month of closing |
Real Estate Tax Adjustment |
1 to 6 months |
Mansion Tax |
1% of entire purchase price once the sale exceeds $1,000,000 |
Move-in Deposit |
$250-$1,000 (refundable after move-in if there is no damage) |
If Purchased Directly from a Sponsor
|
NYC Real Property Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000 |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Sponsor’s Attorney Fee |
$1,500 |
For the Seller
|
Own Attorney |
Approx. $1,750+ |
Managing Agent Fee |
$200-$500 |
Move-out Deposit |
$250-$1,000 (refundable after move-out if there is no damage) |
NYC Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000
Plus $25 administrative fee |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Broker Commission |
6% of purchase price |
E Tax Filing (ACRIS) |
$50 |
Gains Tax Withholding (out of state seller) |
7.7% of gain |
Non-US Resident (FIRPTA) Tax |
10% purchase of price |
Closing Costs for Co-ops
For the Purchaser |
Own Attorney |
Approx. $1,750+ |
Bank Attorney (if financing purchase) |
$500+ |
Bank Fees (if financing purchase) |
Points: 0% to 3% of loan amount |
Application, Credit Check, etc. |
$500+ |
Appraisal |
$275+ |
Managing Agent Fee |
$450+ |
UCC-1 Filing |
$50+ |
Recognition Agreement Fee |
$200+ |
Lien Search |
$350+ |
Short Term Interest |
Equal to interest for balance of month in which you close |
Move-in Deposit |
$250-$1,000 (refundable after move-in if there is no damage) |
Maintenance Adjustment |
Pro-rated for the month of closing |
Mansion Tax |
1% of entire purchase price once the sale exceeds $1,000,000 |
For the Seller
|
Own Attorney |
Approx. $1,750+ |
Managing Agent Fee |
$450+ |
Move-out Deposit |
$250-$1,000 (refundable after move-out if there is no damage) |
NYC Transfer Tax |
1% of purchase price up to $500,000
1.425% of purchase price over $500,000 |
NYS Transfer Tax |
$4 per $1,000 of purchase price |
Miscellaneous Title Fees |
Approx. $200 |
UCC-3 Filing |
$50+ |
Flip Tax |
Depends on building |
Stock Transfer Tax |
$0.05 per share |
Broker Commission |
6% of purchase price |
Estate Fees |
Co-op may impose additional fees for estate sales |
Gains Tax Withholding (out of state seller) |
7.7% of gain |
Non-US Resident (FIRPTA) Tax |
10% of purchase price |
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