New York townhouse sales and prices have fallen over the past year on the back of lower Wall Street bonuses and uncertainty surrounding the global economic backdrop.
There were 177 townhouse sales worth a total of $1.4 billion across Manhattan, Brooklyn Heights, Park Slope and Central Harlem in the first half of 2016, down from 191 sales worth $2.1 billion in the same period a year earlier, according to Leslie J. Garfield, a real estate brokerage specializing in townhouses.
The average sales price of a townhouse, meanwhile, was $8.1 million, or $1,409 per square foot. This was lower than the average prices of $9.7 million and $1,492 per square foot recorded in the first half of 2015.
MORE:Manhattan Luxury Home Sales Fall to Lowest Level Since January
Leslie J. Garfield attributed the downturn to volatility in the stock market, lower Wall Street bonuses, the vote for Brexit by the U.K., the upcoming presidential election and a reduction in the number of foreign buyers, although the overall figures masked some strong performers.
The West Village and Chelsea, for example, both witnessed a 9% rise in price per square foot in the first half of the year compared with the same period a year earlier, while overall average sales grew by 51% and 21%, respectively. On the Upper East Side, sales were 19% higher, at 47, although the average sales price slid 3%, to $10.7 million.
MORE:In Luxury Real Estate, It’s Mostly A Buyer’s Market Now
Another strong performer was Central Harlem, which has seen average sales prices jump by 59%, from $2.04 million to $3.3 million, while the average price per square foot increased by 39%, to $865 per square foot. With this sharp, increase in prices, however, has come a slight drop in sales, from 15 to 13.
“The Central Harlem real estate market has performed strongly this year, and I suspect that this will continue moving forward, given prices in the $2.75 million-to-$3.75 million range, the ever-increasing number of hip, quality restaurants and the proximity to Central and Morningside parks,” said Alex Yoel, a real estate adviser at Leslie J. Garfield.
In contrast, the Upper West Side saw average prices drop 27% in the first half of this year compared with a year ago to $7.2 million, while prices fell 40% to $6.3 million in Brooklyn Heights and sales tumbled from 28 to 10.
Editor's note: Leslie J. Garfield, the real estate brokerage that provided the townhouse report, has corrected its data on the number of townhouses sold in New York City during the first half of 2016. There were 177 sold. The story has been updated throughout to reflect the new data.