Condominium sales have climbed throughout all of Manhattan except in the Financial District, according to Radar Logic, the company that runs the RPX index which calculates condo sales. The RPX index measures 8 separate neighborhoods in Manhattan and reported that prices declined in five out of eight Manhattan neighborhoods, with our neighborhood accounting for the steepest drop in both sales and price per square foot.
In April, Manhattan condo sales had seen a stark rise to 383 units — 246 units over last years figures. However, compared with March numbers, April condo sales were up 20%.
An increase in condo sales is usually good news –except the overal price per square foot was down 6.9% year over year. Our neighborhood which is included with condominiums located in the financial district had reported an average price per square foot drop of nearly 16.% percent Â – at approximately $869.21 per square foot. Whereas Murray Hill/Gramercy Park reported the biggest gain, with a 6.4% to $1,014.04 per square foot.
The decrease in square foot value is due to the amount of inventory in and around our area — with developers pricing units to sell. According to the report, “The principal problem facing the housing markets is one of oversupply — at the current levels of demand it will take years to absorb unsold inventory.”