BONDREPORT QTR 1 2017 WELCOME TO THE 16TH EDITION OF THE BOND REPORT

The first quarter was off to a good start and the consensus is that the market has picked up, more than just due to seasonality. There are multiple bids happening for well-priced listings particularly, in low inventory sub-markets. “Well- priced” is key to a property selling quickly. Increasingly, we see that the sale of a property depends on it. Buyers are informed and have choices, and therefore they are demonstrating less urgency compared to when the market was more frenzied in recent years.

With respect to inventory, we continue to see strong inventory numbers which first started to make a return in the resale market last year. While we are not at the peak levels of almost 9,000 from 2009, we are hovering in the 5,000s-- a strong increase, but still not an oversupply. The balance between ample supply and strong, consistent demand, has created a well-paced market.

After much speculation that the luxury market was due for a fall, this sector has been off to a stronger start than expected for 2017, and it will be interesting to see where it goes over the next three quarters. Many of the contracts from previous years in this sector finally closed in 2016, and this could show price corrections to more accurately reflect the current market as a whole.

Interest rates are a hot topic in the industry. They did increase in March and we are expected to see several more increases in 2017. While we have experienced 10 years of record low mortgage rates, the support for increased rates is backed by the overall positive performance of the economy and job growth, two factors that should have a positive impact on the real estate market.

In this market, the importance of pricing your home accurately as a seller and understanding the market as a buyer is crucial to ensuring the best outcome. A BOND agent is ready to assist your specific needs and answer your specific questions.

We look forward to assisting you.

Noah Freedman, Partner,

BOND New York Real Estate

All source material for the BOND Report is provided by Urban Digs, Online Residential (OLR), and BOND New York’s proprietary listings database. This material is believed to be accurate, however is subject to errors and omissions.

© 2017 BOND New York. All material presented herein is intended for information purposes only. While information is believed to be correct, it is represented subject to errors, omissions, changes, or withdrawals without notice. All property information, including but not limited to, square footage and number of bedrooms, is approximate. Exact measurements should be verified by your own attorney, architect, engineer, or zoning expert. BOND New York is a broker that supports Equal Housing Opportunity.

BONDNEWYORK.COM BOND REPORT QTR 1 2017

MARKET OVERVIEW Market Trends March 2016 - March 2017 Pending Sales +12.6% and Active Listings +10.7% While the BOND Report presents a traditional historical snapshot of the market, we first present two charts 5500 indicating pending sales (all listings in 5000 contract) versus active listings (available 4500 listings), for both year-over-year and within Quarter 1 2017. This data compares sales 4000 volume amidst real-time inventory trends 3500 and offers the best indication of where the 3000 market is going. 2500

2000 Marketwide, pending sales were up 12.6% MAR APR MAY UN UL AUG SEP OCT NOV DEC AN FEB MAR since this time last year and up 6.7% since the start of the year. The highest number of contracts signed took place at the end Pending Sales: +12.6% Active Listings: +10.7% of the quarter, finishing off at 2,833. The lowest levels were in the first week of February at 2,430, which can be attributed to seasonality. Supply also showed increases both since this time last year and within Market Trends Within Quarter 1 2017 Quarter 1, 2017. Supply was up 10.7% Pending Sales +6.7% and Active Listings +28.4% compared to January 2016 and up 28.4% since the start of the year. 5500 5000 Average prices were still high in Quarter 1, 2017 which can largely be attributed to 4500 legacy contracts, new development contracts 4000 that were signed as far back as 2013 and closed when the building was completed. 3500 As the number of legacy contracts decreases, 3000 we should see price corrections that more accurately reflect current market conditions 2500 in future quarters. 2000

In addition to the trends of pending sales JAN FEB MAR showing increases year-over-year, monthly contract activity was up 19.8% since last Pending Sales: +6.7% Active Listings: +28.4% Pending Sales Active Listings year. We expect to see a continued increase in activity as we head into the spring selling season where a slower paced market of late 2016 will give way to brisker activity.

MONTHLY CONTRACT ACTIVITY

42.7% FROM LAST MONTH

19.8% FROM LAST YEAR Source: UrbanDigs.com BONDNEWYORK.COM Percentages Are Rounded. BONDREPORT QTR 1 2017

QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016 Properties Sold 2,107 -0.75% 2,123 -3.48% 2,183 Pending Sales 2,833 +2.87% 2,754 +0.32% 2,824 Avg Price $2,107,898 +1.54% $2,075,882 -0.36% $2,115,517 Median Price $1,100,000 +6.80% $1,030,000 -6.38% $1,175,000 Avg Price per Sq Ft $1,562 +1.67% $1,537 +2.93% $1,518

LOOKING BACK Days on Market March 2016 - March 2017

Quarter 1, 2016 marked the first time 75 the average price for sales marketwide 70

crossed the $2,000,000 mark. One year 65

later, the average price still stands above 60

$2,000,000 at $2,107,898. The impact 55 of legacy contracts on data trends was still evident on Quarter 1, 2017. 50 45 MAR APR MAY UN UL AUG SEP OCT NOV DEC AN FEB MAR The number of properties sold showed almost no change decreasing 0.75% quarter-over-quarter and a small decrease year-over-year at 3.48%. The median price at $1,100,000, decreased 6.38% year-over- Days on Market Within Quarter 1 2017 year, but was up 6.80% quarter-over- quarter. The average price per square foot was $1,562, showing a tick upwards at 77 2.93% year-over-year and 1.67% quarter- 75 over-quarter. 73 The number of properties sold showed the biggest change in the $3,000,000 to 71 $5,000,000 category; which increased 69 from 7% to 9% quarter-over-quarter, and the number of properties sold in the $0 - 67 $500,000 category; which decreased from 14% to 11% quarter-over-quarter. 65 JAN FEB MAR The number of days a property stayed on the market marketwide increased both within Quarter 1, 2017 and year-over-year, both by 16.6%. The number of days a property was on the market at the beginning of the year was 66 days and increased incrementally until the end of the quarter at 77 days.

Source: UrbanDigs.com Percentages Are Rounded. BONDREPORT QTR 1 2017 BOND HEAT INDEX CHANGE IN PENDING SALES WITHIN 1ST QUARTER 2017

INWOOD/WASHINGTON HEIGHTS HAMILTON HEIGHTS +3.4% +23.1%

EAST HARLEM MORNINGSIDE HEIGHTS/HARLEM +37.5% -25.6% UPPER EAST SIDE +9.6%

UPPER WEST SIDE +4.4% MIDTOWN EAST/CENTER +9.3%

MURRAY HILL MIDTOWN SOUTH +4.5% -33.8% KIPS BAY +21.2% CHELSEA GRAMERCY/FLATIRON +14.7% +5.3%

WEST VILLAGE GREENWICH VILLAGE -12.7% 0.0% EAST VILLAGE SOHO +42.1% +18.6% NOLITA TRIBECA -75.0% +17.2% LOWER EAST SIDE +46% BATTERY PARK CITY FINANCIAL DISTRICT/CIVIC CENTER -22.2% -16.2%

For a more in-depth analysis of your neighborhood, contact your BOND agent today.

BONDNEWYORK.COM BONDREPORT QTR 1 2017

A CLOSER LOOK Nolita, Midtown South and Morningside Heights/Harlem showed the largest decreases in percentage change with Nolita down 75.0%, Midtown South down 33.8% and Morningside Heights/Harlem down 25.6%. The active- to-pending ratio for Nolita was 19.0, the active-to-pending ratio for Midtown South was 2.02, and the active-to- pending ratio for Morningside Heights/Harlem was 1.07.

The Lower East Side, East Village and the East Harlem showed the largest increases in percentage change of pending sales within Quarter 1, 2017 with the Lower East Side up 46.0%, East Village up 42.1% and the East Harlem up 37.5%. The Lower East Side active-to-pending ratio was 1.01, the active-to-pending ratio for East Village was 1.01 and the active-to-pending ratio for the East Harlem was 1.25.

LARGEST DECREASE LARGEST INCREASE

MORNINGSIDE HEIGHTS/HARLEM EAST HARLEM Days on Market...... 67 Days on Market...... 181 Pending Sales ...... 58 Pending Sales ...... 44 Active Sales...... 62 Active Sales...... 55 Active-To-Pending Ratio..1.07 Active-To-Pending Ratio..1.25

MIDTOWN SOUTH EAST VILLAGE Days on Market...... 116 Days on Market...... 88 Pending Sales ...... 47 Pending Sales ...... 81 Active Sales...... 95 Active Sales...... 82 Active-To-Pending Ratio..2.02 Active-To-Pending Ratio..1.01

NOLITA LOWER EAST SIDE Days on Market...... 95 Days on Market...... 50 Pending Sales ...... 1 Pending Sales ...... 92 Active Sales...... 19 Active Sales...... 93 Active-To-Pending Ratio..19 Active-To-Pending Ratio..1.01

BONDNEWYORK.COM BONDREPORT QTR 1 2017 MARKET SNAPSHOT

CLOSED SALES CLOSED SALES BY SIZE BY SIZE YEAR-OVER-YEAR QUARTER-OVER-QUARTER

50% 50%50%

40% 40%40%

30% 30%30%

20% QTR 1 2016 20%20% QTR 1 2016

10% 10%10% QTR 4 2016 QTR 1 2017 QTRQTR 1 12017 2017 0% 0% 0% STUDIOS 1 BEDS 2 BEDS 3+ BEDS Studios STUDIOS 1 1Beds BEDS 22 Beds BEDS 3+ 3+Beds BEDS

CLOSED SALES CLOSED SALES BY PROPERTY TYPE BY PROPERTY TYPE YEAR-OVER-YEAR QUARTER-OVER-QUARTER

QUARTER 1 2017 QUARTER 1 2016 QUARTER 1 2017 QUARTER 4 2016 51% 51% 51% 54% 49% 49% 49% 46%

CO-OP CONDO CO-OP CONDO CO-OP CONDO CO-OP CONDO

Source: UrbanDigs.com Percentages Are Rounded.

BONDNEWYORK.COM BONDREPORT QTR 1 2017 MARKET SNAPSHOT

CLOSED SALES BY VOLATILITY INDEX PRICE CATEGORY YEAR TO DATE

$0 - $500K $500K - $1M $1M - $2M $2M - $3M $3M - $5M $5M+ 36% 35% 31% 26%

24% 24% 1.80 14% 13% 12% 11% 10% 10% 10% 9% 9% 8% 8% 7%

QTRQTR 1 1 2017 2017 QTRQTR 44 20162016 QTRQTR 1 1 2016 2016

$0 - $500K $500K - $1M $1M - $2M $2M - $3M $3M - $5M $5M+ 36% 35% 31% 26% MONTHLY CONTRACT24% 24% MONTHLY NEW SUPPLY BY SIZE 14%

BY SIZE SHARE13%

ACTIVITY 12% 11% 10% 10% 10% 9% 9% 8% 8% 7% STUDIOS 1 BEDS 35%35% 30%30% QTR 1 2017 QTR 4 2016 QTR 1 2016 14% 25%25% 35% 20%20% 15%15% 10%10% 31% 5%5% 0%0% 2 BEDS 19% STUDIOSStdis 1 BEDS1 eds 2 BEDS2 eds 3+ BEDS3+ eds

3+ BEDS

Source: UrbanDigs.com Percentages Are Rounded.

BONDNEWYORK.COM BONDREPORT QTR 1 2017 CONDO MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016 Avg Price $3,048,317 -0.90% $3,075,943 +3.82% $2,936,060 Median Price $1,700,000 +1.18% $1,680,112 -10.53% $1,900,000 Avg Price per Sq Ft $1,811 +1.12% $1,791 +4.71% $1,730 Studio (median) $655,000 -6.56% $701,000 +3.15% $635,000 1 Bedroom (median) $1,100,000 0.00% $1,100,000 +2.33% $1,075,000 2 Bedroom (median) $2,250,000 +9.76% $2,050,000 -1.75% $2,290,000 3+ Bedroom (median) $4,300,000 -16.38% $5,142,162 -14.00% $5,000,000

Condo March 2016 - March 2017 Pending Sales +8.3% and Active Listings +15.5% CONDO SALES

Compared to the big price increases we saw in Quarter 1, 2016 year-over-year in

almost every sector of the condo market,

Quarter 1, 2017 prices either remained flat or showed decreases. The average price for R PR EP OT O E E R condos remained just over the $3 million mark at $3,048,317, largely due to legacy Pending Sales: +8.3% Active Listings: +15.5% contracts and does not represent current market conditions. The median price was down 10.53% year-over-year at 1,700,000. By size, 3+ bedrooms showed the largest Condo Within Quarter 1 2017 decrease at 16.38% quarter-over-quarter Pending Sales -0.4% and Active Listings +27.7% and a 14% decrease year-over-year. 2800 Pending sales were up 8.3% compared to this time last year and showed almost no 2300 change at 0.4% within the quarter. Quarter 1, 2017 showed an increase in active listings 1800 of 15.5% since last year and an increase of 27.7% since January 2017. 1300

800 JAN FEB MAR

MONTHLY CONTRACT ACTIVITY Pending Sales: -0.4% Active Listings: +27.7%

37.4% FROM LAST MONTH Closed Sales By Size Year-Over-Year 16.4% FROM LAST YEAR 40%

30%

20%

Oct Source: UrbanDigs.com 10% Percentages Are Rounded. QTR 1 2016 QTR 1 2017 0% Studios 1 Beds 2 Beds 3+ Beds BONDREPORT QTR 1 2017 CO-OP MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016 Avg Price $1,210,224 -1.84% $1,232,948 -6.92% $1,300,221 Median Price $770,000 +1.99% $755,000 -0.65% $775,000 Avg Price per Sq Ft $1,079 -0.59% $1,086 -5.33% $1,140 Studio (median) $450,000 +1.12% $445,000 +1.56% $443,080 1 Bedroom (median) $697,500 -2.45% $715,000 +1.09% $690,000 2 Bedroom (median) $1,300,000 0.00% $1,300,000 -4.06% $1,355,000 3+ Bedroom (median) $2,381,250 -10.65% $2,665,000 -14.10% $2,772,000

Co-op March 2016 - March 2017 Pending Sales +16.5% and Active Listings +4.6%

2100 CO-OP SALES 2000 19 00

The co-op market data also demonstrated 1800 a shift similar to the one seen in the condo 1700 market with respect to price action. Quarter 1600 1500 1, 2017 prices showed decreases or very 1400

little change both year-over-year and 1300

quarter-over-quarter. By size, 3+ bedrooms 1200

110 0 showed the largest median decrease of MARR APRPR MAY JUN JUL AUG SEPEP OCTOT NOVO DECE JAN FEBE MARR 10.65% quarter-over-quarter and a 14.10% decrease year-over-year. The average price Pending Sales: +16.5% Active Listings: +4.6% marketwide for co-ops in Quarter 1, 2017 was $1,210,224, down 6.92% year-over- Co-op Within Quarter 1 2017 year. The 2 bedroom category showed no Pending Sales +12.6% and Active Listings +29.5% change, maintaining a median price of $1,300,000. 2000 1900 Pending sales were up 12.6% within 1800 Quarter 1, 2017 reaching the lowest levels 1700 in the first week of February at 1,238 and 1600 reaching peak levels at the end of the quarter 1500 at 1,496. Pending sales were up 16.5% from 1400 last year. Quarter 1, 2017 also showed an 1300 increase of 29.5% since last year. 1200 JAN FEB MAR Pending Sales: +12.6% Active Listings: +29.5% MONTHLY CONTRACT ACTIVITY Closed Sales By Size Year-Over-Year 51.8% FROM LAST MONTH 50%

26.0% FROM LAST YEAR 40% 30%

20% Oct 10% QTR 1 2016 QTR 1 2017 0% Source: UrbanDigs.com Studios 1 Beds 2 Beds 3+ Beds Percentages Are Rounded. BONDREPORT QTR 1 2017 LUXURY MARKET: A VIEW FROM THE TOP The luxury market is defined as the top 10% of all co-ops and condo transactions. The entry threshold for Quarter 1, 2017 was $4,300,000. The average price for closed sales was $9,248,929, up 10.02% year-over-year. The median price was $7,127,750, up 8.53% quarter-over-quarter and up 6.09% year-over-year. The average price per square foot was $3,085 up 4.39% quarter-over-quarter and up 6.69% year-over-year.

LUXURY MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016 Avg Price $9,248,929 -2.14% $9,451,092 +10.02% $8,406,954 Median Price $7,127,750 +8.53% $6,567,712 +6.09% $6,718,424 Avg Price per Sq Ft $3,085 +4.39% $2,956 +6.69% $2,892

5-10 10+ MILLION MILLION PENDING / ACTIVE PENDING / ACTIVE

CONDO CONDO Pending Sales: +27.7% From Last Year Pending Sales: +1.8% From Last Year Active Listings: +6.2% From Last Year Active Listings: -2.0% From Last Year

CO-OP CO-OP Pending Sales: 0.0% From Last Year Pending Sales: -25.0% From Last Year Active Listings: +15.8% From Last Year Active Listings: -18.4% From Last Year

500 250 400 200 300 150 200 100 100 50 0 Pending Sales Active Listings 0 Pending Sales Active Listings Condo Co-op Condo Co-op

Source: UrbanDigs.com Percentages Are Rounded. BONDNEWYORK.COM BONDREPORT QTR 1 2017 TOWNHOUSE SALES The townhouse market is priced differently than any other submarket as a result of each individual property’s unique characteristics. This submarket is also the smallest market with the least amount of transactions. As a result, the number of transactions are fewer and the data reflects this. The average townhouse price for Quarter 1, 2017 was $6,760,905. The median price was $5,100,000. The average price per square foot was $1,334.

TOWNHOUSE MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016 Avg Price $6,760,905 +30.55% $5,178,936 +5.52% $6,407,000 Median Price $5,100,000 +4.08% $4,900,000 -16.52% $6,109,000 Avg Price per Sq Ft $1,334 -3.44% $1,382 -27.27% $1,835

ACTIVE LISTINGS PENDING SALES DAYS ON MARKET 26.8% Year To Date 34.6% Year To Date 3.4% Year To Date 7.2% From Last Month 29.6% From Last Month 0.0% From Last Month 6.0% From Last Year 5.4% From Last Year 13.3% From Last Year

ACTIVE TOWNHOUSE LISTINGS

UPPER WEST SIDE: UPPER EAST SIDE: 7.7% Year To Date 5.6% Year To Date 27.3% From Last Month 13.6% From Last Month 3.7% From Last Month 46.2% From Last Month

WEST VILLAGE: EAST VILLAGE: 45.5% Year To Date 49.1% Year To Date 33.3% From Last Month 2.5% From Last Month 100.0% From Last Month 28.1% From Last Month

GREENWICH VILLAGE: 77.8% Year To Date 23.1% From Last Month 33.3% From Last Month

Source: UrbanDigs.com BONDNEWYORK.COM Percentages Are Rounded. 4 OFFICE LOCATIONS

CORPORATE HEADQUARTERS 1776 BROADWAY, 19TH FLOOR NEW YORK, NY 10019 PHONE: 212-582-2009

UPPER EAST SIDE 1500 SECOND AVENUE NEW YORK, NY 10075 PHONE: 212-584-4220

UPPER WEST SIDE 2 1776 BROADWAY, 5TH & 23RD FLOOR NEW YORK, NY 10019 PHONE: 212-582-2009

UPPER MANHATTAN 1677 AMSTERDAM AVENUE NEW YORK, NY 10027 1 & 3 PHONE: 646.719.1821

UNION SQUARE 853 BROADWAY, 15TH FLOOR NEW YORK, NY 10003 PHONE: 212.206.1770

CHELSEA 5 64 W 21ST STREET NEW YORK, NY 10010 PHONE: 212.645.8800

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