Home buyers in the Manhattan condo market appeared to be taking advantage of two months of modest inventory growth and faltering prices in October, giving pending sales of condo homes a 31 percent surge from September.
Amid the flurry of sales activity, condo prices fell 1 percent from September, according to the StreetEasy Condo Price Index, but remained roughly 10 percent above the year-ago price level.
Slowing price growth was triggered by recent and largely seasonal gains in supply. October condo inventory inched up 3 percent from September and was nearly 11 percent above the year-ago level. There were 4,405 condo units available in October – the greatest monthly supply in 24 months.
Seizing on the favorable conditions, condo buyers acted fast in October. Pending sales of condos surged 31 percent from September and were nearly 8 percent above the year-ago level. Units sold at a brisk pace as well, spending a median time of just 49 days on the market. This was 10 days less than September and 18 days less than last year.
The spike in home sales activity followed a seasonal trend. October is historically the “last stop” for buyers and sellers before the winter months put a chill on home sale activity. Five of the last six Octobers saw double-digit monthly growth in pending sales of all homes – including condos, co- ops, and townhomes – ranging from 20 percent in 2009 to this year’s 40 percent.
But the good news for buyers may prove to be short-lived as we head into the coldest months of the year. Expectations of another colder-than-normal winter season in the New York region could reverse Manhattan’s recent and fragile inventory gains. Condo inventory remains historically low, with October’s supply nearly 9 percent below the 5-year monthly average.
