New York City’s multi-family sales volume has dipped for the second month running, but pricing for the sector remains strong, according to data released today by Ariel Property Advisors.
There were 37 New York City multi-family transactions in July totaling $250.8 million, according to Ariel’s data. That’s an 18 percent decline in transaction volume from July 2011, during which there were 45 transactions totaling $712.4 million. June 2012 saw 53 transactions totaling $464.6 million, representing a 30 percent decrease in transaction volume and a 46 percent decrease in dollar volume between June and July of this year.
“The decline in volume could be attributed to sellers’ increasing price expectations around the end of the first quarter and such strength may have delayed contract signings that would have resulted in more July closings,” said Shimon Shkury, president of Ariel Property Advisors. “Early August numbers coming in appear to have already passed July 2012’s sales figures, so we expect this decline to be temporary and that we will see very strong August sales statistics.”
Shkury noted that despite the recent drop in volume, pricing has remained strong for the asset class. For the six months ending July 2012, monthly dollar volume averaged around $400 million. That’s an improvement over the six months ending July 2011, which averaged around $350 million a month.