Say what you will about the market's softening, and where you think prices may go.
The newest closed sale of new construction in East Manhattan is at 1300 11th (5br/5ba, 4007 sqft.), and it's marking out a new high of sorts.
Against expectations, right?
With a closed sale price of $4.700M, it's neck-and-neck in sale price with two late-2022 new construction sales:
1560 1st (6br/6ba, 4650 sqft.) at $4.750M (Oct. '22) (pictured), and
1535 Nelson (5br/6ba, 4750 sqft.) at $4.650M (also Oct. '22).
So that would make this new sale price consistent, no big change from Q4 2022. (The listing was asking $4.995M.)
What stands out is that the PPSF for 1300 11th is $1,173/PSF.
That's significantly higher than every PPSF we can find on East Manhattan new construction going back to 2019.
The previous high was at 1636 2nd (5br/5ba, 3553 sqft.) at $1,112/PSF on a June 2022 sale price of $3.950M (the lot size is just over 5100 sqft., so the home size is smaller as well).
Curiously, both of these top-tier PPSF new homes are on streets with a rep for being busy. 1636 2nd faces busy 2nd St. and can't really be set back too far, due to the modestly sized lot. (Homes on the northern side have bigger lots and can be set back and quieter.)
1300 11th is at a quite busy corner along Meadows Ave., which carries a lot of daily traffic. There's a stoplight at MB Blvd. just one block down, and traffic tends to back up during peak times. So while the home is very well crafted and features a big corner lot, there's no avoiding some car traffic impact.
The high PPSF for new construction on a full-size lot (7500 sqft.) was also on 11th St., at 1618 11th (7br/7ba, 5007 sqft.), which got $5.475M in Feb. 2022. (Notice all the 2022 peaks?)
The PPSF there was $1,093/PSF.
Now, believe it or not, realtors don't make much use of PPSF for market tracking or valuations.
In a diverse market like Manhattan Beach, price per square foot needs to be isolated from multiple variables, including home age, lot size and location (east, west, good, bad, etc.).
Only when you pull together a set of very similar properties does the PPSF become a more usable indicator.
So, looking at new construction east of Sepulveda, and concentrating on similar lot sizes, you have a data set that is comparable, and PPSF can be a factor worth looking at.
And yet, with these caveats, based on 1300 11th, the PPSF is showing an upward trend, not a downward trend, for East Manhattan new homes.
Watch for the next one.
Please see our blog disclaimer.
Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.