New York City is seeing a revival in co-op sales in the luxury market according to a new report.
The rise comes as condo sales slip back as revealed by Stribling & Associates, a real estate brokerage specializing in the city’s high-end market.
The firm’s director of data & reporting, Garrett Derderian, says co-ops haven’t been favored in recent years, so why has the first half of 2018 seen an uptick in sales?
"Over the past several years, buyers' predilections shifted towards downtown new development condos. As a result, uptown co-op prices became considerably softer since sellers have been adjusting expectations,” he explains. “Now, with a flood of costly new construction condos on the market, there is a perception those prices are overinflated. Co-ops, which have already adjusted their prices, have become more attractive and oftentimes offer more space for the same dollar amount."
Condo sales lower as co-ops bounce back
Condo sales in the first half of this year dropped 39% in total sales – the first decline in 6 years – while overall sales in the $5m+ sector dropped 31%. Luxury co-op sales were up 10% though, after declining in the previous two years.
In volume, condo sales (303) still far outpaced co-op sales (103) but both types saw year-over-year rises in prices.
For condos, the median price increased 3% to $7,537,550, and the average price was up 2% to $9,929,390. Meanwhile, co-ops saw a median price increase of 4% to $7,000,000, and an average price rise of 5% to $9,382,169.
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