High temperatures are expected in the summer, but high sales activity in residential real estate is a surprise during the third quarter.
“The fact that the pace of sales for the third quarter — which really is the slowest quarter in the sale market — was so vibrant, actually speaks well for consumer confidence and also the quality of the product that’s out there now,” Steve Kliegerman, president of Halstead Property Development Marketing told Brokers Weekly.
In the Warburg realty 3Q report, president Frederick Peters writes, “In recent years, Memorial Day Weekend has tended to herald the kick-off for a slow summer season. In 2015 we had the opposite experience.”
Corcoran’s Q3 report noted that market-wide closed sales rose three percent to 4,087 compared to 3,956 last summer.
They praised a nearly 70 percent boost in new development as a major driver for the increased closings.
The high activity allowed prices to continue their ascent, which set median-sale price at $999,000. This is a 10-year high and a 12 percent leap from summer 2014. Average sale price is set at $1.71 million, which is four percent stronger than this time last year.
In addition, properties spent significantly less time on the market in Q3 than in the same quarter last year with listings lasting an average of 78 days for sale instead of 106.
Kliegerman did point out the lethargic pace that has become a theme in 2015 in the upper-tier luxury residential realm. However, he expects the coming quarters to hold more positive tidings for that section of the market.
“I think if we delve into the numbers a little bit deeper, the other thing that you see is a lot of the ultra luxury product is on the market now,” said Kliegerman, who pointed to 432 Park Avenue and 66 Leonard Street as properties that will deliver “big spikes” in the luxury market over the course of the coming year.
In addition to consumer confidence and product quality, Kliegerman credited rising familiarity with digital realty as another catalyst for the substantial summer numbers. He said that as more Americans become familiar with viewing homes online, continuing the housing search becomes more common, even during vacations.