B O N D N E W Y O R K . C O M

BONDREPORTQTR 4 2016

1776 Broadway 853 Broadway 1500 Second Avenue 64 West 21st Street 1677 Amsterdam AveNew York, NY 10019 New York, NY 10003 New York, NY 10075 New York, NY 10010 New York, NY 10027

212.582.2009 212.672.6350 212.584.4220 212.645.8800 646.719.1821

WELCOME TO THE 15TH EDITION OF THE BOND REPORT

The New York real estate market has had quite a year. At the end of 2015, we were looking at a market that had split--with luxury new development reaching for unheard of pricing, while the resale market waited for much needed inventory to bring everyday buyers back into the fold.

While the first quarter of 2016 saw the average price for all co-ops and condos cross the $2,000,000 threshold for the first time, it also marked the beginning of a shift in the luxury market, where supply outpaced a limited buyer pool. Meanwhile, the resale market was gaining steam, with a significant return of inventory for the first time in several years.

Fast forward to the end of 2016 and we see that the trends that first took hold in the beginning of the year have cemented a shift toward a “new market”. Inventory levels have continued to increase, buyers now have more choices and sellers cannot realistically get the aspirational prices they had believed to be possible based on recent years. Overall, the new market is operating at a slower pace, but a steady one; the transaction volume reflects how buyers are unwilling to bite on out-of-touch priced listings. As a seller, it’s crucial to come to terms with the new market and price accordingly or risk having your property sit on the market indefinitely. The luxury market is soft, but has not had the trickle-down effect to the middle and economy markets many feared it would have at the start of the year.

Quarter 4, 2016 also saw a much anticipated increase in both interest and mortgage rates. However, neither came close to levels that were feared, and mortgage rates are still within historic low territory.

As we look ahead towards Quarter 1, 2017, many industry experts are trying to predict where the market will take us in the coming year. While there is no crystal ball, we do expect a few things: fewer new development permits than in the previous year and adjustments in new development unit types and pricing to better reflect the demand for housing in the lower to middle luxury market. There is also much speculation as to what, if any, impact the new President will have on the real estate market. Uncertainty about policies that could be enacted by the incoming administration and how they might manifest remains to be seen.

In this market, sellers and buyers are having an increasingly difficult time judging inventory based on comparable sales, and now more than ever, it’s important to have an expert in the industry to educate you and guide you through the market. A BOND agent is ready to assist your specific needs and answer your specific questions to ensure the best possible outcome for your transaction.

We look forward to assisting you in the New Year.

Noah Freedman, Partner,

BOND New York Real Estate

B O N D N E W Y O R K . C O M

© 2016 BOND New York 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.

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.

B O N D N E W Y O R K . C O M

BONDREPORT QTR 4 2016

MARKET OVERVIEWWhile the BOND Report presents a traditional historical snapshot of the market, we first present two charts indicating pending sales (listings in contract) versus active listings (available listings), for both year-over-year and within Quarter 4, 2016. This data compares sales volume amidst real-time inventory trends and offers the best indication of where the market is going.

Marketwide, pending sales were slightly up at 3.6% since the beginning of 2016, finishing off the year at 2,754. Peak levels for the number of contracts signed occurred in mid-July, topping out at 3,207 before decreasing steadily into the end of the summer and then remaining relatively flat throughout most of Quarter 4, 2016. Supply levels were at their lowest levels for 2016 in January at 3,451 then increased steadily into the spring and summer months, peaking in June at 5,417. Overall, supply is up 13.8% from this time last year.

Pending sales within Quarter 4, 2016 showed an increase of 11.7%. The number of contracts signed at the beginning of the quarter was 2,435 compared to 2,754 by the end. The bulk of the increase started in mid-November and continued through December. Supply began to dip from its peak levels in the early summer before increasing again throughout the fall and tapering off in December, which could be attributed to seasonality. Supply started at 5,154, decreasing 23.8% and finishing at 3,927.

The change in pending sales by neighborhood showed mixed results. Nolita showed a whopping 300% increase as a result of its small transaction pool with 5 contracts signed within Quarter 4, 2016. The Lower East Side showed the next biggest increase at 50%. The Upper East Side, Midtown East, Battery Park City, Murray Hill and Chelsea all showed large increases in pending sales within Quarter 4, 2016. East Harlem showed the largest decrease within Quarter 4, 2016 at 38.5%, followed by the East Village at 25% and Hamilton Heights at 17.6%.

Active Listings: -23.8%Pending Sales: +11.7%

Market Trends December 2015 - December 2016Pending Sales +1.8% and Active Listings +13.8%

Active Listings: +13.8%Pending Sales: +1.8%

Market Trends Within Qtr 4 2016Pending Sales +11.7% and Active Listings -23.8%

Source: UrbanDigs.comPercentages Are Rounded.

Dec Jan Mar May July Sep NovFeb Apr Jun Aug Oct Dec

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BONDREPORT QTR 4 2016

INWOOD/WASHINGTON HEIGHTS

-6.3%

MORNINGSIDE HEIGHTS/HARLEM

13.6%

HAMILTON HEIGHTS

-17.6%

UPPER WEST SIDE

15%

EAST HARLEM

-38.5%

UPPER EAST SIDE

40.3%

CHELSEA

23.7%

MIDTOWN EAST/CENTER

28.1%

WEST VILLAGE

-16.7%

MURRAY HILL

27.5%

TRIBECA

5.6%

GRAMERCY/FLATIRON

5.3%

BATTERY PARK CITY

24%

LOWER EAST SIDE

50%FINANCIAL DISTRICT/CIVIC CENTER

13.4%

BOND HEAT INDEXCHANGE IN PENDING SALES WITHIN 4TH QTR 2016

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

EAST VILLAGE

-25%

MIDTOWN SOUTH

7.9%

KIPS BAY

5.9%

SOHO

5.3% NOLITA

300%

GREENWICH VILLAGE

-3.8%

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BONDREPORT QTR 4 2016

80

70

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40

Dec Feb Apr Jun Aug Oct Dec

LOOKING BACKQTR 4 2016 % CHG (QTR) QTR 3 2016 % CHG (YR) QTR 4 2015

Properties Sold 2,123 -10.22% 2,340 -6.45% 2,260

Pending Sales 2,754 -14.74% 3,160 -20.15% 3,309

Avg Price $2,075,882 +1.23% $2,050,311 +7.23% $1,925,736

Median Price $1,030,000 -4.37% $1,075,000 -8.25% $1,115,000

Avg Price per Sq Ft $1,537 +3.11% $1,489 +2.30% $1,501

Days on Market December 2015 - December 2016

The average price increased only slightly compared to the previous quarter at $2,075,311, still hovering over the $2,000,000 mark and up 7.23% year-over-year. The median price was down 8.25% year-over-year and down 4.37% quarter-over-quarter at $1,030,000. Overall sales transactions were also down 10.22% quarter-over-quarter and down 6.45% year-over-year. The number of days a property was listed on the market peaked at the start of the quarter at 76, reaching the fewest days in mid-November at 65 before increasing again into December and peaking at 74 at the end of Quarter 4, 2016. Overall, the average number of days properties for all inventory were listed on the market increased 23% from last year and showed almost no change since the beginning of this year. We saw a slower-paced market, with more inventory, a slight decrease in prices, and fewer transactions. This could be attributed to a continued shift to a market favorable for buyers who have more to choose from in the reemerging resale market, and who do not feel compelled to purchase aspirationally priced homes when they can take their time in choosing what best suits their needs from a wider pool of properties.

Days on Market Within Q4 2016

63

65

67

69

71

73

75

77

Source: UrbanDigs.comPercentages Are Rounded.

Oct Nov Dec

B O N D N E W Y O R K . C O M

BONDREPORT QTR 4 2016

*Percentages may not sum to 100 due to rounding

CLOSED SALES*

BY PRICE CATEGORY

BY SIZE YEAR-OVER-YEAR BY SIZE QUARTER-OVER-QUARTER

BY PROPERTY TYPE QUARTER-OVER-QUARTER

BY PROPERTY TYPE YEAR-OVER-YEAR

QTR

4 20

15QT

R 3

2016

QTR

4 20

16

0 20 40 60 80 100

$0–$500K $500K–$1M $1M–$2M $2M–$3M $3M–$5M $5M+

20%

STUDIOSTUDIO

CO-OP

1BR1BR

CONDO

2BR3BR+

QTR 4 2015

QTR 4 2016

QTR 4 2016

14% 35% 24% 7% 8%

13% 35% 26% 9% 9% 8%

QTR 3 2016QTR 4 2016

QTR 4 2015 QTR 4 2016 QTR 3 2016

46% 54% 46% 54%52%48%

15% 32% 26% 11% 9% 7%

10%

15%16%

31%

39%

16%

15%

39%

31%

15%17%

37%

31%

44% 56%

15%16%

32%

37%

B O N D N E W Y O R K . C O M

BONDREPORT QTR 4 2016CONDO MARKET MATRIX

QTR 4 2016 % CHG (QTR) QTR 3 2016 % CHG (YR) QTR 4 2015Avg Price $3,075,943 +1.68% $3,024,162 +14.39% $2,633,318

Median Price $1,680,112 +0.30% $1,675,000 -1.18% $1,700,000

Avg Price per Sq Ft $1,791 +3.48% $1,729 +3.51% $1,728

Studio (median) $701,000 +4.42% $670,000 +1.95% $687,318

1 Bedroom (median) $1,100,000 +5.91% $1,035,000 +2.27% $1,075,000

2 Bedroom (median) $2,050,000 +3.17% $1,985,000 -0.03% $2,050,682

3+ Bedroom (median) $5,142,162 +5.94% $4,836,687 +14.09% $4,417,600

The average price for condos in Quarter 4, 2016 remained above the $3,000,000 mark at $3,075,943, up 14.39% year-over-year. This can be attributed to closings in the upper luxury new development market that likely went into contract a year or two before, and it is not reflective of the current condo market as a whole. The median price was $1,680,112, showing almost no change quarter-over-quarter and down slightly year-over-year from Quarter 4, 2015 at $1,700,000. By size, the three and greater bedroom condos showed the greatest median price increase, up 14.09% year-over-year at $5,142,162, with two bedrooms showing almost no change at $2,050,000. Pending sales were up 7.6% within the year and supply increased 13.1%. Pending sales within Quarter 4, 2016 increased 14.9% and supply was down 21.8% since the start of the quarter.

Pending Sales +7.6% and Active Listings +13.1%Condo December 2015 - December 2016

Pending Sales: +7.6% Active: +13.1%

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Source: UrbanDigs.comPercentages Are Rounded.

Pending Sales: +14.9% Active: -21.8%

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10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17 12/24 12/31Oct Nov Dec

Pending Sales +14.9% and Active Listings -21.8%Condo Within Quarter 4 2016

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BONDREPORT QTR 4 2016

1200

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10/1 10/8 10/15 10/22 10/29 11/5 11/12 11/19 11/26 12/3 12/10 12/17 12/24 12/31Oct Nov Dec

CO-OP MARKET MATRIXQTR 4 2016 % CHG (QTR) QTR 3 2016 % CHG (YR) QTR 4 2015

Avg Price $1,232,948 -3.10% $1,271,230 -3.33% $1,273,991

Median Price $755,000 -3.97% $785,000 +3.97% $725,000

Avg Price per Sq Ft $1,086 -3.14% $1,120 -0.13% $1,087

Studio (median) $445,000 -1.12% $450,000 +6.52% $416,000

1 Bedroom (median) $715,000 -0.98% $722,000 +2.80% $695,000

2 Bedroom (median) $1,300,000 -1.15% $1,315,000 -0.38% $1,305,000

3+ Bedroom (median) $2,665,000 +9.94% $2,400,000 -9.76% $2,925,000

Total Inventory 8338 -6.82% 6038 -13.42% 6974

Total new Inventory 1698 -19.75% 1698 4.10% 1631The average price for co-ops in Quarter 4, 2016 was down slightly both year-over-year and quarter-over-quarter at $1,232,948. The median price was $755,000 down slightly quarter-over-quarter, but reflects a small increase year-over-year. By size, the median price for co-op studios, $445,000, one bedrooms, $715,000, and two bedrooms, $1,300,00, showed almost no change quarter-over-quarter. The three plus bedroom category showed an increase of 9.94% quarter-over-quarter, but showed a decrease year-over-year of 9.76%. Co-op supply increased 17.4% since last year and pending sales were down 3.1%. Within the quarter, supply decreased 27.0% and pending sales were up 7.6%.

Pending Sales +7.6% and Active Listings -27.0%Co-op Within Quarter 4 2016

Pending Sales: +7.6% Active: -27.0%

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Jun Aug Oct Dec Feb Apr Jun

Pending Sales: -3.1% Active: +17.4%

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Dec Feb Apr Jun Aug Oct Dec

Source: UrbanDigs.comPercentages Are Rounded.

Co-op December 2015 - December 2016 Pending Sales -3.1% and Active Listings +17.4%

B O N D N E W Y O R K . C O M

BONDREPORT QTR 4 2016

LUXURY MARKET MATRIX

TOWNHOUSE MARKET MATRIX

The luxury market is defined as the top 10% of all co-op and condo transactions. The entry threshold for Quarter 4, 2016 was $4,450,000. The average price for Quarter 4, 2016 was $9,451,092, up 18.36% year-over-year and up 5.12% quarter-over-quarter. The median price ticked-down slightly from the previous quarter to $6,567,712, but was up 10.17% year-over-year. The average price per square foot for Quarter 4, 2016 was $2,956, up 3.61% from the previous quarter and up 4.55% from last year.

The townhouse market is a unique market with the smallest inventory and buyer pool of any submarket. Therefore, the number of transactions in this submarket is fewer than any other submarket, and the data provided reflects this. The average price for Quarter 4, 2016 was $5,178,936, and the median price was $3,300,000. The average price per square foot was $1,382.

DID YOU KNOW...?In the late 1800s, the city’s most powerful newspapers such as The New York Times, The Sun and The World and Tribune were building the tallest buildings on what came to be known as “Newspaper Row” on the east side of City Hall. They were considered “vertical factories” because the entire production process could be done on the premises; editors were housed along with huge steam-engine presses and printing thousands of copies an hour.

QTR 4 2016 % CHG (QTR) QTR 3 2016 % CHG (YR) QTR 4 2015Avg Price $9,451,092 +5.12% $8,967,486 +18.36% $7,715,782

Median Price $6,567,712 -2.35% $6,721,805 +10.17% $5,900,000

Avg Price per Sq Ft $2,956 +3.61% $2,849 +4.55% $2,821

QTR 4 2016 % CHG (QTR) QTR 3 2016 % CHG (YR) QTR 4 2015Avg Price $5,178,936 -21.86% $6,311,291 -12.95% $5,849,711

Median Price $3,300,000 -39.39% $4,600,000 -14.39% $3,775,000

Avg Price per Sq Ft $1,382 -24.56% $1,722 +5.28% $1,309

Source: Am New York, 2016

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