NIKKI FIELD | nikkifield.comSenior Global Real Estate Advisor, Associate Broker | 212.606.7669 | nikki.field@sothebyshomes.com

A FIELD GUIDE TO SELLING THE WORLDManhattan Market Report | 2nd Quarter 2019 | nikkifield.com

Q2 2019 MARKET OVERVIEW 3,315 Closed sales this quarter represented a 5% increase from the prior year and the average sale price increased by 3% from $2.05M to $2.12M.

Under $3M Market: +3% sales volume and average sale price rose by 6%$3M-$10M Market: +14% sales volume while the average prices were down 4%Over $10M Market: +18% sales volume with a -12% decrease in average priceOver $50M Market: Sales have been steadily rising and we are celebrating some record setting sales at the top of the market:

• The Field Team’s approximately $80 million dollar sale of the Penthouse and full floor below at 212 Fifth Avenue set the record for priciest deal ever below 42nd Street.

• Ken Griffin’s $238 million penthouse purchase at 220 Central Park South set a record for the highest-priced home ever sold in the U.S.

• Philip Falcone’s Upper East Side townhouse sold for $77 million, making it the most expensive residential townhouse ever sold.

FOREIGN BUYERS IN A STALL Foreign investment in US real estate is down 36% year over year. Previously international buyers made up a large part of the real estate market until two years ago when several countries implemented new policies making it difficult to invest in the U.S. and driving a decline in market activity. 2015 was a milestone year when $96 billion flowed into US real estate from foreign investment. By 2018, that number shrunk to $61 billion, with sovereign wealth funds selling $945 million more in real estate than they purchased.

NEW DEVELOPMENT DECLINE Scorched-earth negotiating was in full swing with developers throwing in concessions that severely burned their bottom line in order to unload inventory as quickly as possible. Negotiability was high pushing 8-12% on average off of asking prices. Both provided perfect conditions for a major surge of +50% in sales compared to Q2 2018. Inventory represents 20-25% of the condo market, however, the Days On Market averages well past 6 months and closer to 200 days with more than 50% of properties on the market longer than 120 days.

TAX HIKEOn July 1st New York City’s “mansion tax” increased from a flat 1% surcharge on all home sales over $1 million to a progressive tax starting at 1.25% on homes between $2 million to $3 million up to a maximum of 3.9% on those $25 million or more. We anticipate that developers and sellers may absorb the cost of the tax hike in the form of price reductions and concessions.

OPPORTUNITY RISINGThere are indeed great deals available in the market and negotiability is high. Properties priced appropriately are finding buyers, aspirational pricing no longer gets deals done. Motivated sellers are those upgrading, taking a small hit on the sale and more than making up for it on their purchase discount.

The Field Team continues to be the Top Producing Sales Team at Sotheby’s International Realty. We have a powerful network of advisors and partnerships in place to secure and deliver your real estate goals wherever in the world you are buying, selling or investing.

©2019 Sotheby’s International Realty, Inc. All rights reserved. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully. This material is based upon information which we consider reliable but because it has been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. This offering is subject to errors, omissions, changes including price or withdrawal without notice. Sotheby’s International Realty and the Sotheby’s International Realty logo are registered (or unregistered) service marks used with permission. Operated by Sotheby’s International Realty, Inc. Real estate agents affiliated with Sotheby’s International Realty, Inc. are independent contractors and are not employees of Sotheby’s International Realty, Inc.

4 8 E XQ U I S I T E R E S I D E N C E S D E VE L O P E D BY M A D I S O N E Q U I T I E S

10 0%S O L D

Congratulations to our

212 Fifth Avenue Sales Team

NIKKI FIELDAssociate Broker

KEVIN B. BROWNAssociate Broker

MARA FLASH BLUMAssociate Broker

BRAD INGALLSAssociate Broker

©MMXIX Sotheby’s International Realty, licensed real estate broker. Sotheby’s International Realty and the Sotheby’s International Realty logo are registered service marks used with permission. Each Office Is Independently Owned And Operated. Equal housing opportunity. All information deemed reliable but not guaranteed. Price and availability subject to change.

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#1 Ranked at #5 Ranked NYC Team

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