The Metrics Spiked, But, Alas, Property Sales Remain Uneven. Here's Why?
Generally speaking, the New York City property sales market has been trending positive. But despite the upward metrics, the road to recovery remains bumpy.
In 2011, investment sales totaled $25.6 billion citywide—in other words, 80 percent more than 2010’s $14.25 billion and more than four times the $6.1 billion mark in 2009. These increases, while substantial, remain 58 percent below the 2007 peak of $62.2 billion.
Last year alone, brokers sold 2,122 buildings, up 25 percent over the 1,696 that changed hands in 2010.
This figure was 50 percent higher than the 1,410 properties sold in 2009, but remains 58 percent below the 2007 peak of 5,018.
The average sales price of property in New York City last year stood at $12 million, up 44 percent from the 2010 average of $8.4 million and nearly three times the $4.3 million average in 2009. Notably, the $12 million average is now approaching the $12.4 million average seen at the peak of the market in 2007.
On a citywide basis, overall property values increased by 6.1 percent in 2011, over 2010 levels, on a price-per-square-foot basis.
Larger transactions also returned to the market with gusto. To be sure, 58 sales reached $100 million or more, more than double the 28 sales in 2010 and more than eight times the meager seven buildings that sold in 2009.
Still, while all the statistics are positive, why did I refer to the recovery as uneven?