The Manhattan condo market continues to endure a freeze of activity during the winter months.
The seasonal slowdown kept Manhattan condo inventory and sales volumes low in January, while condo sales prices remain high – nearly nine percent higher than this time last year, according to the StreetEasy Condo Price Index.
However, the rate of price growth has been consistently decelerating over the last year, signaling that the condo market is slowly returning to a more sustainable pace, according to the January 2015 StreetEasy Manhattan Condo Market Report.
Condo inventory in January fell 0.5 percent from December. Inventory remains 18.2 percent lower than Manhattan’s 5-year historical average.
However, the number of condos on the market is 3.7 percent above this same time last year, indicating an overall trend of improving inventory levels.
Pending sales in January fell 6.3 percent from December, representing 310 condos that went into contract last month.
This is the lowest monthly total of pending sales recorded in three years.
A reflection of lower sales activity, condos in Manhattan spent a median of 82 days on the market in January, 19 days longer than December and the longest time on market since February 2013.
“Everything in Manhattan slows down in the dead of winter, the real estate market included,” said StreetEasy data scientist, Alan Lightfeldt.
“Buyers seemed to be in no rush to close on properties in January, with condos lingering on the market for a full 19 days longer than December.
“As the spring selling season in March approaches, we expect the warmer weather to send an anticipated boost in inventory and sales volume.”
Looking ahead to spring, condo sales prices are expected to grow by 4.9 percent in 2015, considerably less than the 2014 growth rate of 8.3 percent and roughly a third of the 2013 growth rate of 16.6 percent, according to the StreetEasy Condo Price Forecast.
Slowing condo price growth is indicative of a healthier market.