Properties between $1 million and $3 million are flying off the shelves. As prices rise across the board, this category is absorbing a growing number of buyers who are finding themselves priced out of more expensive apartments. And the majority of buyers in this range know that they need to act fast because there is a line of competing buyers who will grab the property if they don’t.
However, higher up on the ladder — in both the $3-million-to-$5-million range and the $5-million-to-$10-million market — sales have slowed as buyers wade through more choices than they’ve had in years and sellers overreach with asking prices.
Apartments between $1 million and $3 million logged more than 1,300 sales during the third quarter — more than double the number of residential sales between $3 million and $10 million.
Thanks to low inventory and outsized demand, apartments asking between $1 million and $3 million are spending an average of 73 days on the market, which is tallied as the time between the last list price and when the property goes into contract. While that may seem like a long time, it’s 42 days fewer than 2013 and half the time it currently takes to sell a property over $5 million.
Sales volume in the $1 million to $3 million segment jumped 18 percent during the third quarter, after several quarters of double-digit drops.