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® Condo Market Report

February 2015 by the numbers

+0.7% Surge in February pending sales StreetEasy Condo Price Index (Month-over- pushes condo inventory to Month) record low +0.6% s freezing temperatures and ice pounded of condo units in Midtown increased by 10.5 StreetEasy Condo the region in February, the percent. Price Forecast (Month- Manhattan condo market continued a over-Month) A 4-month decline in total units available during Condo prices in the submarket the peak of winter’s chill. Total inventory continue to be the highest at 12.1 percent declined 2.4 percent from January and ended above the Manhattan-wide level. According to -2.4% the month 5.4 percent below last year’s level. the StreetEasy Condo Price Forecast, condo Inventory (Month-over- It has been a steady downward slide for prices are expected to grow by 3.9 percent in Month) Manhattan condo inventory since the market 2015 – signifcantly less than the 2014 growth experienced its peak level in June 2009. Since rate (7.1 percent) and the robust growth rate of then, the number of units available on the 2013 (16.6 percent). market has fallen by 56.1 percent to the lowest +27.5% level recorded by StreetEasy. It is typical to Pending sales activity defed the cold weather see seasonal boosts to inventory during the Pending Sales Volume in February. Monthly sales volume surged busy spring months, but none of these annual (Month-over-Month) 27.5 percent over the course of the month, boosts have resulted in a long-term increase. rebounding from the market freeze in January, typically the slowest month of the year. Condos February condo prices grew by 7.8 percent that went into contract sold at a brisk pace, from last year, according to the StreetEasy taking a median time of 62 days to sell. This was 62 days Condo Price Index (SECPI). Buoyed by ever- a reduction of 20 days from January, the largest Median Time on Market shrinking supply, condo prices closed the one-month reduction in 12 months. month 12.6 percent above previous peak prices set in September 2007. February was the 27th February was an early ‘spring cleaning’ for consecutive month of monthly price growth, the condo market. With a healthy increase in pointing to the strength of the market amid pending sales activity and a signifcant decline $1,212,000 constrained supply and resilient demand for in time on market, inventory fell to a record low Manhattan real estate. level (3,175 units). Historically, the spring boost Median Sales Price in inventory begins in earnest in March. Condos in the Midtown submarket showed the greatest monthly price growth in February (1.9 percent), more than doubling the Manhattan growth rate and closing the month StreetEasy is pleased to present the Manhattan Condo $1,439 11 percent higher than last year. Midtown Market Report, a monthly analysis of ’s Median Price per Square also outperformed the rest of the borough in largest and most comprehensive database of condo Foot listings and sales. To see more analysis on New York City inventory growth. Whereas all other submarkets real estate trends from StreetEasy, visit StreetSmarts at: saw inventory declines in February, the number streeteasy.com/blog/research/ or join the Twitter conversation using #StreetSmarts Manhattan Condo Market Report February 2015 StreetEasy Condo Price Index

Condo price appreciation continues 27-month rally in February, led by strong growth in Midtown markets

February Manhattan condo prices rose 0.7 percent from January and West, showed the greatest price growth in February, more than doubling closed the month 7.8 percent above last year’s level, according to the Manhattan monthly growth rate. Price appreciation in the Upper the StreetEasy Condo Price Index (SECPI). February marked the 27th and Upper submarkets underperformed the rest of consecutive month of Manhattan condo price appreciation, the second Manhattan in February. longest rally on record. Condo prices were buoyed by ever-shrinking inventory and resilient demand for Manhattan real estate. Condo prices will grow by 0.6 percent from their February level in March, according to the StreetEasy Condo Price Forecast. Yearly growth in 2015 The Downtown submarket, which includes neighborhoods such as is expected to slow to 3.9 percent, down from 7.1 percent growth seen Soho, and Flatiron, continued to be Manhattan’s strongest in 2014. market in February. The Midtown submarket, which includes neighborhoods such as Midtown, South, and Midtown

+0.7% (242) +0.6% (244) StreetEasy Condo Price Index StreetEasy Condo Price Forecast February 2015 (Month-over-Month) March 2015 (Month-over-Month) 300

Midtown 263 February 2015 Condo price appreciation was 250 the strongest in the Midtown submarket, growing 1.9 percent from January. 215 Previous market peak 200 September 2007

150 242 Current level 177 February 2015 Previous market trough November 2009

100

StreetEasy Condo Price Index Value Condo Price StreetEasy Indexed to January 2000

50

Manhattan Downtown Midtown

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

® #StreetSmarts 2 Manhattan Condo Market Report February 2015 Sales & Inventory

1 month-over- year-over- Inventory February 2015 January 2015 month February 2014 year

Total Condos Available 3,175 3,253 -2.4% 3,357 -5.4% Bottom Price Tier 2 19.0% 19.7% 22.5% Middle Price Tier 28.7% 28.8% 28.9% Top Price Tier 52.3% 51.5% 48.6% Median Asking Price $2,100,000 $2,020,000 4.0% $1,800,000 16.7% Median Asking Price per sq. f. $1,778 $1,763 0.8% $1,583 12.3%

Recorded Sales3

Total Sales 454 384 18.1% 393 15.4% Median Sales Price $1,211,717 $1,484,099 -18.4% $1,330,000 -8.9%

Pending Sales

Total Pending Sales 371 291 27.5% 326 13.8% Median Days on Market 62 82 -24.4% 54 15.9%

1 Inventory, recorded sales, and pending sales data is for condos only. 2 Price tier shares are based on total number of condo units available during February 2015. Bottom tier is comprised of units priced up to $971,000; middle tier are units priced between $971,000 and $1.96 million; top tier is units priced above $1.96 million. 3 Sales data is based on condo transactions recorded by the New York City Department of Finance as of March 16, 2015 and adjusted using a multiplier. This may not represent all February 2015 sales transactions.

Near-perfect convergence: as Median Time on Market, by Unit Type total inventory declines, total time on market for condos and co-ops is now almost equivalent. Median time on market for condos reached 162 days The median time on market for Manhattan 180 in October 2008, almost condos fell to 62 days in February and to 60 triple the median time in days for co-op units. Historically, condos February 2015 160 Median time on market have taken more time to enter contract for all Manhattan homes than co-ops. As inventory continues to 140 fell to 63 days in February dwindle, that diference has been all but from 81 days in January. erased. Since February 2014, the median 120 time on market for both have been within fve days of each other. 100

80

Median Days on Market 60

How is time on market measured? 40 The number of days from the original listing 20 All Homes Condos Co-ops on StreetEasy to when it enters contract. Afer a buyer enters contract on a unit, it is pulled from the market and is no longer 2009 2010 2011 2012 2013 2014 2015 available to other buyers - creating a logical end point to “days on market.”

® #StreetSmarts 3 Manhattan Condo Market Report February 2015 Neighborhood Summary

Recorded Sales Data Listings Data Pending Sales Data Median Total YoY Median YoY Total YoY Median Listing YoY Pending YoY Days on YoY Sales 1 Change Sales Price Change Inventory 1 Change Price Change Sales1 Change Market Change

All Downtown 122 -14.7% $1,425,275 -3.0% 1,210 -11.4% $2,817,500 34.5% 156 25.8% 63 3.3% 6 - - - 103 14.4% $2,200,000 83.3% 29 163.6% 3 -93.3% Chelsea 23 15.0% $1,356,000 -44.7% 162 -10.5% $2,997,500 24.9% 20 -4.8% 62 92.2% Chinatown 1 - - - 6 - - - 2 - - - Civic Center 0 - - - 0 - - - 0 - - - East Village 3 - - - 44 -27.9% $1,772,500 14.4% 10 66.7% 51 87.0% Financial District 27 -20.6% $1,220,881 -5.0% 275 -2.5% $1,643,000 32.8% 33 22.2% 99 -3.9% Flatiron 15 66.7% $1,400,000 7.7% 128 -22.9% $2,962,500 7.2% 17 88.9% 66 -29.0% 7 - - - 56 -24.3% $1,920,000 8.0% 5 - - - 6 - - - 86 7.5% $7,050,000 50.4% 11 -35.3% 55 -38.9% Little Italy 0 - - - 6 - - - 0 - - - 0 - - - 18 -18.2% $2,025,000 50.0% 0 - - - 0 - - - 19 90.0% $9,500,000 460.5% 3 - - - Soho 9 - - - 99 -30.8% $4,595,000 64.7% 6 - - - Tribeca 17 - $2,545,625 -24.8% 165 -10.8% $5,950,000 48.9% 18 50.0% 102 20.7% 8 - - - 43 -21.8% $3,595,000 30.7% 2 - - - All Midtown 92 19.5% $1,084,581 -5.7% 820 10.5% $1,825,000 10.6% 81 3.8% 77 67.4% Central Park South 1 - - - 46 9.5% $3,550,000 7.6% 2 - - - Kips Bay 1 - - - 16 -52.9% $1,237,500 59.7% 2 - - - Midtown 13 -7.1% $1,850,000 22.2% 199 19.9% $2,750,000 0.9% 17 112.5% 129 67.5% 5 - - - 45 21.6% $1,950,000 2.9% 2 - - - Midtown West 19 26.7% $1,303,360 31.3% 229 29.4% $1,399,000 21.7% 24 20.0% 103 247.5% Murray Hill 5 - - - 69 -17.9% $1,295,000 17.7% 10 -47.4% 43 -11.5% 1 - - - 3 - - - 0 - - - Sutton Place 2 - - - 31 -18.4% $1,850,000 21.6% 2 - - - Turtle Bay 7 - - - 125 -9.4% $2,210,000 -7.6% 16 14.3% 31 -6.1% All Upper East Side 39 -31.6% $1,510,000 -18.7% 498 -3.1% $2,650,000 15.2% 44 2.3% 140 60.3% 5 - - - 72 60.0% $2,142,500 -10.5% 0 - - - 14 -39.1% $2,450,000 0.3% 208 -7.6% $3,150,000 -5.3% 22 29.4% 180 190.3% Upper Carnegie Hill 0 - - - 15 -34.8% $2,995,000 7.2% 1 - - - Upper East Side 7 - - - 99 -9.2% $4,325,000 73.3% 12 140.0% 124 30.0% Yorkville 13 30.0% $1,275,000 15.5% 104 -7.1% $1,640,000 37.6% 9 - - - All Upper West Side 64 -22.0% $1,478,750 6.6% 442 -4.7% $1,850,000 -2.4% 51 13.3% 35 16.7% Lincoln Square 19 -48.6% $1,537,500 -31.7% 222 -10.5% $2,412,500 12.2% 16 -15.8% 35 2.9% 6 - - - 30 -28.6% $2,370,000 64.3% 3 - - - Morningside Heights 0 - - - 1 - - - 0 - - - Upper West Side 39 -7.1% $1,150,000 -3.0% 189 9.2% $1,450,000 -3.0% 32 39.1% 32 14.3% All 43 26.5% $677,136 28.9% 213 -21.1% $780,000 -23.8% 38 5.6% 79 14.5% Central 33 17.9% $727,000 38.4% 130 -20.7% $902,125 29.1% 19 -5.0% 82 64.0% 6 - - - 33 -28.3% $698,000 -10.8% 3 - - - Hamilton Heights 1 - - - 28 21.7% $500,000 -13.6% 12 140.0% 47 5.7% Inwood 0 - - - 0 - - - 0 - - - Manhattanville 0 - - - 0 - - - 0 - - - Washington Heights 3 - - - 22 -35.3% $534,000 16.8% 4 - - - West Harlem 0 - - - 0 - - - 0 - - -

1 Data provided for neighborhoods with at least 10 for-sale listings or recorded sales within the month. Data for all other neighborhoods is suppressed.

® #StreetSmarts 4 Manhattan Condo Market Report February 2015 Glossary

StreetEasy Condo The StreetEasy Condo Price Index (SECPI) is a monthly index that tracks changes in sales prices of Price Index condo homes in Manhattan. The index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995. Given this methodology, the Index accurately captures the change in condo values by controlling for the varying composition of condo homes sold in a given month. Data on arms-length sales of condo homes is sourced from the New York City Department of Finance. The Index is calculated monthly and is indexed to January 2000 with a baseline value of 100. StreetEasy Condo The StreetEasy Condo Price Forecast (SECPF) predicts the change in Manhattan condo sale prices Price Forecast one month out from the current reported period. Incorporating the StreetEasy Condo Price Index, StreetEasy’s comprehensive database of listing prices and days on market - two leading indicators to future condo prices - we are able to accurately forecast what next month’s condo prices will be before the release of publicly recorded sales data.

Condo Price Tiers Condo listings are placed into one of three price tiers - bottom, middle, and top - using price cut-ofs derived from a 12-month weighted moving average of recorded sales prices at the 33rd and 66th percentiles. Price tier cut-ofs change each month in order to capture evolving trends in condos that are being sold. The top tier corresponds with the most expensive condo listings. Inventory Monthly condo inventory is the sum of all condo units that were available on StreetEasy at any point during the month. For example, if a unit was originally listed in February and sold in May, it would be included in the inventory number for all four months (February through May). This approach allows us to analyze what was available to buyers in a given month - instead of at a specifc moment or cut- of.

Days on Market The number of days from the original listing on StreetEasy to when it enters contract. Afer a buyer enters contract on a unit, it is pulled from the market and is no longer available to other buyers - creating a logical end point to “days on market.” Measuring days on market by the number of days from the original listing to the recorded closing date may be skewed by lengthy closing periods during which the unit is not technically on the market.

Pending Sales The number of condo units that entered contract during the month.

Median Sales Price The exact middle sales price among all recorded sales prices of condo units that closed during the month. In general, median values are more accurate than average values, which may be skewed by price outliers (a few sales that are extremely expensive or extremely inexpensive). In order to consider only arms-length transactions, we do not include sales prices lower than $10,000 in this calculation. Median Asking The exact middle asking price among all asking prices of listed condo units during the month. Price

Median Price Per The exact middle recorded price per square foot among all condos that closed during the month that Square Foot included square footage information in closing documents with the New York City Department of Finance.

About StreetEasy

StreetEasy® is New York City’s leading local real estate marketplace on mobile and the Web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the major NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the fve boroughs of New York City, as well as Northern and the Hamptons. Launched in 2006, StreetEasy is based in Manhattan’s Flatiron neighborhood. StreetEasy is owned and operated by Zillow Group (NASDAQ:Z).

StreetEasy is a registered trademark of Zillow, Inc.

To read more about New York City real estate market trends from StreetEasy, visit StreetSmarts at streeteasy.com/blog/research and join the conversation on Twitter using #StreetSmarts.

® @StreetEasy /StreetEasy #StreetEasy 5