Manhattan CondoMarket Report

®

-7.9%Inventory (Month-over-Month)

$1,537,251Median Sales Price

+0.8%StreetEasy Condo Price Index (Month-over-Month)

58 daysMedian Time on Market

-26.1%Number of Pending Sales (Month-over-Month)

November 2014b y t h e n u m b e r s

-0.7%StreetEasy Condo Price Forecast (Month-over-Month)

$1,479Median Price per Square Foot

the final push for home purchases before the year’s end. November pending sales fell 26.1 percent from October’s buying frenzy, and was 6.6 percent below last November’s volume.

Strong and consistent price appreciation over the last two years put Manhattan condo prices nearly 10 percent above their previous market peak level, but signs point to a slowdown in 2015. Prices fell 1 percent in October and are predicted to fall 0.7 percent in December, according to the StreetEasy Condo Price Forecast. Price growth, which was particularly robust in 2013 at 16.5 percent and slightly less strong in 2014 at 7.0 percent, is expected to decelerate to 3.6 percent in 2015. As the market starts to reduce from a boil to a simmer, more sellers may be induced to put their homes on the market to capture this cycle’s peak prices. Greater inventory and more stable price growth may also empower Manhattan buyers to be aggressive about discounting asking prices in 2015.

One step forward and two steps back. Such was the story of the Manhattan condo market as

October’s modest inventory gain reversed sharply in November. The total number of condos available over the course of the month fell 7.9 percent from October, pulling Manhattan inventory nearly 20 percent below its 5-year monthly average. The market had experienced two months of largely seasonal inventory growth prior to November’s anticipated decline, which was the largest since December 2013.

A mix of colder weather and modest price growth put a chill on condo sales activity in November. Condo prices inched up nearly 1 percent from October, according to the StreetEasy Condo Price Index, and were nearly 10 percent above year-ago levels. Condos that went into contract in November spent slightly more time on the market than those that went into contract a month prior, lingering on the market from 47 days to 58 days. Holidays and colder temperatures help damper demand, delaying the home search for many buyers until the spring.

November’s condo sales volume managed to beat expectations for the month. The total number of pending sales of condos was nearly 3 percent greater than the 5-year historical average for November. Still, the market experienced a significant slowing from October, which is typically

Sales activity slows in November as inventory growth stumbles

StreetEasy is pleased to present the Manhattan Condo Market Report, a monthly analysis of New York City’s largest and most comprehensive database of condo listings and sales. To see more analysis on New York City real estate trends from StreetEasy, visit our market report page at:http://streeteasy.com/market/reports

StreetEasy Condo Price IndexManhattan Condo Market Report November 2014

2®

+0.8% (242)StreetEasy Condo Price IndexNovember 2014 (Month-over-Month)

StreetEasy Condo Price ForecastDecember 2014 (Month-over-Month)

1996

250

200

150

100

50

221Previous market peak September 2007

177Previous market trough

November 2009

Stre

etEa

sy C

ondo

Pric

e In

dex

Valu

e

-0.7 % (240)

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

DowntownManhattan

Significant cooling in 2015 expected as Manhattan condo price growth slows to half the 2014 growth rateManhattan condos traded 142 percent above their January 2000 price in November, according to the StreetEasy Condo Price Index (SECPI). November prices were 0.8 percent from October and 9.7 percent above year-ago levels. Although prices were up slightly in November, the market has shown signs of cooling and prices are predicted to decline by 0.7 percent in December, according to the StreetEasy Condo Price Forecast.

The Downtown market outperformed the rest of Manhattan, with a November SECPI value of 271 followed by Upper West Side (242), Midtown (238), and Upper East Side (237).

Condo prices grew 7.0 percent over the course of 2014 according to the SECPI, but growth is expected to settle into a healthy yet slower growth rate in the year ahead. According to the StreetEasy Condo Price Forecast, price growth will decelerate to 3.6 percent in 2015 - roughly half the 2014 growth rate.

Midtown Upper West Side Upper East Side

300

Indexed to January 2000

242Current levelNovember 2014

+40%

+30%

+20%

-10%

-20%

2009

+10%

2010 2011 2012

2013 2014

Sales & InventoryManhattan Condo Market Report November 2014

3®

Inventory November 2014 October 2014 November 2013

Recorded Sales

Pending Sales

Sales data is based on condo transactions recorded by the New York City Department of Finance as of December 12, 2014 and adjusted using a multiplier. This may not represent all November sale transactions.

How is inventory measured? Monthly condo inventory is the sum of all condo units that were available on StreetEasy at any point during the month. This method provides the most comprehensive picture of units that were available to buyers.

Difference in Monthly Inventory from 5-Year Average

Total Condos Available

Bottom Price Tier

Middle Price Tier

Top Price Tier

Median Asking Price

Median Asking Price per sq. ft.

3,405

21.8%

27.6%

50.6%

$1,895,000

$1,618

3,698

20.9%

29.0%

50.1%

$1,850,000

$1,607

-7.9%

2.4%

0.7%

3,425

21.7%

30.4%

47.9%

$1,695,000

$1,476

-0.6%

11.8%

9.6%

Total Pending Sales

Median Days on Market

342

58

463

47

-26.1%

22.3%

366

53

-6.6%

8.5%

Total Sales

Median Sales Price

336

$1,537,251

489

$1,375,000

-31.3%

11.8%

440

$1,325,000

-23.8%

16.0%

3

3

Manhattan condo inventory nearly 20 percent below historical averageManhattan’s monthly condo inventory remains severely constricted at near-record lows. In November, total inventory fell to 19.3 percent below its five-year monthly average.

How is days on market measured? Days on market is the number of days from the original listing on StreetEasy to when it enters contract. After 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.”

1

1 Inventory, recorded sales, and pending sales data is for condos only.

month-over-month

year-over-year

2 Price tier shares are based on total number of condo units available during November 2014. Bottom tier is comprised of units priced up to $980,000; middle tier are units priced between $980,000 and $1.97 million; top tier is units priced above $1.97 million.

2

-19.3%November 2014

Neighborhood Summary

Manhattan Condo Market Report November 2014

4®

All Downtown

Battery Park City

Chelsea

Chinatown

Civic Center

East Village

Financial District

Flatiron

Gramercy Park

Greenwich Village

Little Italy

Lower East Side

Nolita

Soho

Tribeca

West Village

All Midtown

Central Park South

Kips Bay

Midtown

Midtown South

Midtown West

Murray Hill

Roosevelt Island

Sutton Place

Turtle Bay

All Upper East Side

Carnegie Hill

Lenox Hill

Upper Carnegie Hill

Upper East Side

Yorkville

All Upper West Side

Lincoln Square

Manhattan Valley

Morningside Heights

Upper West Side

All Upper Manhattan

Central Harlem

East Harlem

Hamilton Heights

Inwood

Manhattanville

Washington Heights

West Harlem

165

11

25

1

0

4

35

31

23

3

0

4

1

1

25

1

63

0

1

9

4

19

15

4

4

8

39

0

17

1

15

5

43

15

12

0

16

23

8

1

5

0

0

8

0

-1.8%

-46.8%

-12.9%

-33.5%

-

-43.0%

4.8%

154.9%

223.0%

-75.8%

-100.0%

-50.1%

33.0%

-77.8%

40.4%

-88.9%

-35.6%

-100.0%

-73.4%

-45.2%

-50.1%

-28.4%

12.5%

299.0%

-43.0%

-38.6%

-42.4%

-100.0%

-17.7%

-73.4%

-36.4%

-62.0%

-47.5%

-60.5%

71.0%

-100.0%

-55.7%

-13.0%

-63.7%

-33.5%

166.0%

-

-

-

-

Total Sales

YoY Change

1,684

85

113

5

1

53

256

77

62

67

11

34

23

147

186

58

998

49

20

209

55

235

71

8

33

125

589

41

230

16

139

109

559

233

34

0

170

314

119

46

34

6

0

43

0

3.7%

-19.8%

-4.2%

-50.0%

-

-14.5%

6.7%

-22.2%

-12.7%

9.8%

175.0%

25.9%

187.5%

-2.6%

9.4%

-19.4%

13.8%

0.0%

-47.4%

41.2%

17.0%

21.1%

-14.5%

300.0%

-8.3%

-17.8%

6.7%

-4.7%

12.7%

-52.9%

6.9%

-4.4%

7.5%

-1.3%

-12.8%

-100.0%

-26.4%

15.0%

-15.0%

12.2%

126.7%

500.0%

-

377.8%

-

Total Inventory

YoY Change

59

71

66

-

-

52

52

57

36

59

-

26

98

122

59

39

51

149

-

54

19

32

35

-

68

43

56

35

131

70

56

52

57

55

34

-

61

87

63

58

119

-

-

-

-

-15.7%

0.7%

46.7%

-

-

-50.5%

-55.9%

-36.7%

-51.4%

47.5%

-

-

151.3%

320.7%

0.9%

-21.4%

14.6%

-

-

17.4%

-66.1%

-13.5%

-47.0%

-

-42.4%

-10.5%

18.1%

64.3%

191.1%

-34.6%

-4.3%

30.0%

39.0%

31.0%

-

-

75.4%

80.2%

46.5%

-45.3%

-

-

-

-

-

Median Days on Market

YoY Change

$1,690,294

$1,011,252

$1,507,010

$599,000

-

$1,950,000

$1,202,500

$2,285,971

$1,766,653

$3,575,000

-

$1,250,000

$2,790,000

$6,000,000

$3,131,118

$2,342,100

$1,325,000

-

$710,000

$2,550,000

$2,200,000

$1,262,500

$1,240,000

$800,000

$1,595,000

$769,000

$1,731,025

-

$1,625,000

$1,880,000

$1,722,879

$2,712,500

$1,574,214

$2,675,000

$1,480,535

-

$927,250

$580,000

$707,500

$840,000

$530,930

-

-

$510,292

-

21.2%

29.3%

-24.3%

-55.3%

-

143.8%

21.5%

56.3%

53.6%

70.2%

-

-2.0%

-0.6%

189.8%

14.5%

31.6%

17.8%

-

-2.1%

41.7%

32.1%

42.0%

-0.8%

23.0%

92.2%

-15.5%

-35.9%

-

-52.5%

4.7%

-60.0%

167.1%

13.7%

70.9%

147.2%

-

-35.7%

5.5%

32.4%

30.9%

-35.9%

-

-

-

-

Median Sales Price

YoY Change

$2,300,000

$1,500,000

$2,737,500

$1,362,500

$479,000

$1,825,000

$1,308,000

$2,595,000

$2,132,500

$4,417,500

$2,740,000

$1,775,000

$3,595,000

$2,577,762

$4,350,000

$3,172,500

$1,625,000

$3,222,500

$875,000

$2,545,000

$1,320,000

$1,299,495

$1,250,000

$685,000

$1,875,000

$1,800,000

$2,475,000

$2,922,000

$2,900,000

$2,535,000

$3,525,000

$1,299,000

$1,980,000

$2,200,000

$2,455,000

$1,365,000

$1,730,000

$722,500

$892,000

$698,000

$585,000

$289,000

-

$598,000

-

15.3%

8.3%

25.3%

73.0%

-

21.7%

0.7%

-17.0%

21.9%

-3.1%

-21.7%

43.7%

80.2%

0.5%

24.3%

13.3%

16.1%

15.3%

-4.9%

10.7%

2.7%

18.1%

25.6%

2.2%

23.2%

0.3%

10.4%

48.1%

-19.3%

6.7%

56.7%

8.3%

13.1%

8.6%

122.7%

-1.3%

0.0%

28.1%

20.9%

-3.7%

2.8%

-8.1%

-

34.9%

-

Median Listing Price

YoYChange

Sales Data Listings Data Pending Sales

Pending Sales

YoY Change

145

7

29

1

1

3

29

15

4

11

0

3

2

6

28

6

66

2

2

24

2

14

3

1

5

10

40

6

10

2

4

18

55

27

3

0

25

35

16

8

6

0

0

5

0

0.0%

-41.7%

-9.4%

-

-

-57.1%

16.0%

-16.7%

-55.6%

120.0%

-

50.0%

0.0%

-45.5%

154.5%

-45.5%

-25.8%

-

-50.0%

100.0%

-33.3%

-56.3%

-70.0%

-50.0%

25.0%

-50.0%

-16.7%

0.0%

-9.1%

-33.3%

-69.2%

20.0%

0.0%

17.4%

-57.1%

-

0.0%

29.6%

-23.8%

300.0%

500.0%

-

-

66.7%

-

Glossary

Manhattan Condo Market Report November 2014

®

@StreetEa sy /StreetE asy #StreetE asy 5

About StreetEasy

StreetEasy is New York City’s leading 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 deep, proprietary data and useful search tools that help consumers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey and the Hamptons. The company launched in 2006 and was acquired by Zillow, Inc. in August 2013.

StreetEasy Condo Price Index

StreetEasy Condo Price Forecast

Condo Price Tiers

Inventory

Days on Market

Pending Sales

Median Sales Price

Median Asking Price

The StreetEasy Condo Price Index (SECPI) is a monthly index that tracks changes in sales prices of 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.

The StreetEasy Condo Price Forecast (SECPF) predicts the change in Manhattan condo sale prices 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 listings are placed into one of three price tiers - bottom, middle, and top - using price cut-offs derived from a 12-month weighted moving average of recorded sales prices at the 33rd and 66th percentiles. Price tier cut-offs 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.

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 specific moment or cut-off.

The number of days from the original listing on StreetEasy to when it enters contract. After 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.

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

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.

The exact middle asking price among all asking prices of listed condo units during the month.

Price Per Square Foot

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