If you’re surprised that the known slowdown in high-end sales isn’t reflected here, that’s because the market is still flooded with closings from the condo boom of yore, said Citi Habitats’ Brian Morgan. “A lot of new construction that went into contract years ago is just closing now,” he explained. Ultra-luxury new developments still closing on old contracts skew the more modest resales figures, Morgan added.
Although the total dollar volume of condos sold is still pushing upward, the median price of a Manhattan condo was down 15 percent year-over-year in October to $1.33 million, according to a report from Corcoran Group. If that kind of drop is sustained, it could mean more of the condo stock will be in competition with typically lower-priced co-ops. In such a case, MDRN Residential’s Zach Ehrlich pointed out, co-ops typically lose.
“If you’re talking about the same inventory, the market is going to favor condos,” he said, noting that since condos are easier to finance and easier to get approved for, buyers will choose them over co-ops when given the choice.