Market Report Q1 2017

BONDREPORT QTR 1 2017

WELCOME TO THE 16TH EDITION OF THE BOND REPORTThe first quarter was off to a good start and the consensus is that the market has picked up, more than just due toseasonality. There are multiple bids happening for well-priced listings particularly, in low inventory sub-markets. “Well-priced” is key to a property selling quickly. Increasingly, we see that the sale of a property depends on it. Buyers areinformed and have choices, and therefore they are demonstrating less urgency compared to when the market was morefrenzied in recent years.With respect to inventory, we continue to see strong inventory numbers which first started to make a return in theresale market last year. While we are not at the peak levels of almost 9,000 from 2009, we are hovering in the 5,000s--a strong increase, but still not an oversupply. The balance between ample supply and strong, consistent demand, hascreated a well-paced market.After much speculation that the luxury market was due for a fall, this sector has been off to a stronger start than expectedfor 2017, and it will be interesting to see where it goes over the next three quarters. Many of the contracts from previousyears in this sector finally closed in 2016, and this could show price corrections to more accurately reflect the currentmarket as a whole.Interest rates are a hot topic in the industry. They did increase in March and we are expected to see several more increasesin 2017. While we have experienced 10 years of record low mortgage rates, the support for increased rates is backedby the overall positive performance of the economy and job growth, two factors that should have a positive impact onthe real estate market.In this market, the importance of pricing your home accurately as a seller and understanding the market as a buyer iscrucial to ensuring the best outcome. A BOND agent is ready to assist your specific needs and answer your specificquestions.We look forward to assisting you.Noah Freedman, Partner,BOND New York Real EstateAll 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 subjectto errors and omissions.© 2017 BOND 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, orwithdrawals 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. BONDNEWYORK.COM

B ONDREPORT QTR 1 2017MARKET OVERVIEW Market Trends March 2016 - March 2017 Pending Sales +12.6% and Active Listings +10.7%While the BOND Report presents atraditional historical snapshot of the 5500 OCT NOV DEC JAN FEB MARmarket, we first present two charts 5000indicating pending sales (all listings in 4500contract) versus active listings (available 4000listings), for both year-over-year and within 3500Quarter 1 2017. This data compares sales 3000volume amidst real-time inventory trends 2500and offers the best indication of where the 2000market is going.Marketwide, pending sales were up 12.6% MAR APR MAY JUN JUL AUG SEPsince this time last year and up 6.7% sincethe start of the year. The highest number Pending Sales: +12.6% Active Listings: +10.7%of contracts signed took place at the endof the quarter, finishing off at 2,833. The Market Trends Within Quarter 1 2017lowest levels were in the first week of Pending Sales +6.7% and Active Listings +28.4%February at 2,430, which can be attributedto seasonality. Supply also showed increases 5500 FEB MARboth since this time last year and within 5000Quarter 1, 2017. Supply was up 10.7% 4500compared to January 2016 and up 28.4% 4000since the start of the year. 3500Average prices were still high in Quarter 30001, 2017 which can largely be attributed to 2500legacy contracts, new development contracts 2000that were signed as far back as 2013 andclosed when the building was completed. JANAs the number of legacy contracts decreases,we should see price corrections that more Pending Sales: +6.7% Active Listings: +28.4%accurately reflect current market conditionsin future quarters. Pending Sales Active ListingsIn addition to the trends of pending salesshowing increases year-over-year, monthlycontract activity was up 19.8% since lastyear. We expect to see a continued increasein activity as we head into the spring sellingseason where a slower paced market of late2016 will give way to brisker activity.MONTHLY CONTRACT ACTIVITY 42.7% FROM LAST MONTH 19.8% FROM LAST YEAR BONDNEWYORK.COM Source: UrbanDigs.com Percentages Are Rounded.

BONDREPORT QTR 1 2017 QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016Properties Sold 2,107 -0.75% 2,123 -3.48% 2,183Pending Sales 2,833 +2.87% 2,824Avg Price $2,107,898 +1.54% 2,754 +0.32% $2,115,517Median Price $1,100,000 +6.80% $1,175,000Avg Price per Sq Ft $1,562 +1.67% $2,075,882 -0.36% $1,518 $1,030,000 -6.38% $1,537 +2.93% LOOKING BACK Days on Market March 2016 - March 2017Quarter 1, 2016 marked the first time 75 OCT NOV DEC JAN FEB MARthe average price for sales marketwide 70crossed the $2,000,000 mark. One year 65later, the average price still stands above 60$2,000,000 at $2,107,898. The impact 55of legacy contracts on data trends was still 50evident on Quarter 1, 2017. 45The number of properties sold showedalmost no change decreasing 0.75% MAR APR MAY JUN JUL AUG SEPquarter-over-quarter and a small decreaseyear-over-year at 3.48%. The median price Days on Market Within Quarter 1 2017at $1,100,000, decreased 6.38% year-over-year, but was up 6.80% quarter-over- 77quarter. The average price per square foot 75was $1,562, showing a tick upwards at 732.93% year-over-year and 1.67% quarter- 71over-quarter. 69The number of properties sold showed 67the biggest change in the $3,000,000 to 65$5,000,000 category; which increasedfrom 7% to 9% quarter-over-quarter, and JAN FEB MARthe number of properties sold in the $0 -$500,000 category; which decreased from14% to 11% quarter-over-quarter.The number of days a property stayed on themarket marketwide increased both withinQuarter 1, 2017 and year-over-year, both by16.6%. The number of days a property wason the market at the beginning of the yearwas 66 days and increased incrementallyuntil the end of the quarter at 77 days. Source: UrbanDigs.com Percentages Are Rounded.

BONDREPORT QTR 1 2017 BOND HEAT INDEX CHANGE IN PENDING SALES WITHIN 1ST QUARTER 2017INWOOD/WASHINGTON HEIGHTS HAMILTON HEIGHTS +3.4% +23.1%MORNINGSIDE HEIGHTS/HARLEM EAST HARLEM -25.6% +37.5% UPPER WEST SIDE UPPER EAST SIDE +4.4% +9.6% MIDTOWN SOUTH MIDTOWN EAST/CENTER -33.8% +9.3% CHELSEA MURRAY HILL +14.7% +4.5% WEST VILLAGE KIPS BAY -12.7% +21.2% SOHO GRAMERCY/FLATIRON +18.6% +5.3% TRIBECA GREENWICH VILLAGE +17.2% 0.0% BATTERY PARK CITY EAST VILLAGE -22.2% +42.1% NOLITA -75.0% LOWER EAST SIDE +46% FINANCIAL DISTRICT/CIVIC CENTER -16.2%For a more in-depth analysis of your neighborhood, contact your BOND agent today. BONDNEWYORK.COM

BONDREPORT QTR 1 2017A CLOSER LOOKNolita, Midtown South and Morningside Heights/Harlem showed the largest decreases in percentage change withNolita down 75.0%, Midtown South down 33.8% and Morningside Heights/Harlem down 25.6%. The active-to-pending ratio for Nolita was 19.0, the active-to-pending ratio for Midtown South was 2.02, and the active-to-pending ratio for Morningside Heights/Harlem was 1.07.The Lower East Side, East Village and the East Harlem showed the largest increases in percentage change of pendingsales within Quarter 1, 2017 with the Lower East Side up 46.0%, East Village up 42.1% and the East Harlem up37.5%. The Lower East Side active-to-pending ratio was 1.01, the active-to-pending ratio for East Village was 1.01and the active-to-pending ratio for the East Harlem was 1.25.LARGEST DECREASE LARGEST INCREASEMORNINGSIDE HEIGHTS/HARLEM EAST HARLEMDays on Market..........67 Days on Market..........181Pending Sales ...........58 Pending Sales ...........44Active Sales.............62 Active Sales.............55Active-To-Pending Ratio..1.07 Active-To-Pending Ratio..1.25 EAST VILLAGEMIDTOWN SOUTH Days on Market..........88Days on Market..........116 Pending Sales ...........81Pending Sales ...........47 Active Sales.............82Active Sales.............95 Active-To-Pending Ratio..1.01Active-To-Pending Ratio..2.02 LOWER EAST SIDENOLITA Days on Market..........50Days on Market..........95 Pending Sales ...........92Pending Sales ...........1 Active Sales.............93Active Sales.............19 Active-To-Pending Ratio..1.01Active-To-Pending Ratio..19 BONDNEWYORK.COM

BONDREPORT QTR 1 2017 MARKET SNAPSHOT CLOSED SALES CLOSED SALES BY SIZE BY SIZE YEAR-OVER-YEAR QUARTER-OVER-QUARTER50% 1 BEDS 2 BEDS QTR 1 2016 505%0% 22BeBdEs DS QTR 1 201640% 404%0% QTR 4 2016 QTR 1 2017 303%0%30% 202%0% QQTRTR1 12020117720% 3+ BEDS 101%0%10% 0%0% 3+ 3Be+dsBEDS 0% SStuTdUioDs IOS 1 1BedBsEDS STUDIOS CLOSED SALES CLOSED SALESBY PROPERTY TYPE BY PROPERTY TYPE YEAR-OVER-YEAR QUARTER-OVER-QUARTERQUARTER 1 2017 QUARTER 1 2016 QUARTER 1 2017 QUARTER 4 2016 51% 51% 51% 54% 49% 49% 49% 46% CO-OP CONDO CO-OP CONDO CO-OP CONDO CO-OP CONDOSource: UrbanDigs.comPercentages Are Rounded. BONDNEWYORK.COM

BONDREPORT QTR 1 2017 MARKET SNAPSHOT CLOSED SALES BY VOLATILITY INDEX PRICE CATEGORY YEAR TO DATE$0 - $500K $500K - $1M $1M - $2M $2M - $3M $3M - $5M $5M+ 1.8036% 14% 31% 26% 35% 24%11% 24% 13% 10% 10% 12% 9% 7% 10% 8% 8% 9%QQTTRR11 22001177 QQTTRR 44 220011 66 QQTTRR11 22001166$0 - $500K $500K - $1M $1M - $2M $2M - $3M $3M - $5M $5M+36% 14% 31% 26% 35% 24%MONTHLY CONTRACT MONTHLY NEW SUPPLYACTIVITY BY SIZE SHARE 24%11% 10% 13% BY SIZE 10% 7% 12% 9% 8% 10% 8% 9% STUDIOS 1 BEDS 353%5% 303%0%QTR 1 2017 14% 35%QTR 4 2016 QTR 1 2016 252%5% 202%0% 31% 19% 151%5% 1 BED1 SBeds 2 BE2DSBeds 3+ B3E+DBSeds 101%0%2 BEDS 3+ BEDS 5%5% 0%0% STUDStIuOdSios Source: UrbanDigs.com Percentages Are Rounded. BONDNEWYORK.COM

BONDREPORT % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2017CONDO MARKET MATRIX -0.90% $3,075,943 +3.82% QTR 1 2016 QTR 1 2017 +1.18% $1,680,112 -10.53% +1.12% +4.71% $2,936,060Avg Price $3,048,317 -6.56% $1,791 +3.15% $1,900,000Median Price $1,700,000 $701,000 +2.33% 0.00% $1,100,000 $1,730Avg Price per Sq Ft $1,811 +9.76% $2,050,000 -1.75% $635,000 -16.38% $5,142,162 -14.00% $1,075,000Studio (median) $655,000 $2,290,000 $5,000,0001 Bedroom (median) $1,100,0002 Bedroom (median) $2,250,0003+ Bedroom (median) $4,300,000 CONDO SALES Condo March 2016 - March 2017 Pending Sales +8.3% and Active Listings +15.5%Compared to the big price increases wesaw in Quarter 1, 2016 year-over-year in 3000 APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARalmost every sector of the condo market,Quarter 1, 2017 prices either remained flat 2500or showed decreases. The average price for 2000condos remained just over the $3 millionmark at $3,048,317, largely due to legacy 1500contracts and does not represent current 1000market conditions. The median price wasdown 10.53% year-over-year at 1,700,000. MARBy size, 3+ bedrooms showed the largestdecrease at 16.38% quarter-over-quarter Pending Sales: +8.3% Active Listings: +15.5%and a 14% decrease year-over-year. Condo Within Quarter 1 2017Pending sales were up 8.3% compared to Pending Sales -0.4% and Active Listings +27.7%this time last year and showed almost nochange at 0.4% within the quarter. Quarter 28001, 2017 showed an increase in active listings 2300of 15.5% since last year and an increase of 180027.7% since January 2017. 1300 800 FEB MAR JANMONTHLY CONTRACT ACTIVITY Pending Sales: -0.4% Active Listings: +27.7% 37.4% FROM LAST MONTH Closed Sales By Size Year-Over-Year 16.4% FROM LAST YEAR 40%Source: UrbanDigs.com OctPercentages Are Rounded. 30% QTR 1 2016 20% QTR 1 2017 10% 1 Beds 2 Beds 3+ Beds 0% Studios

BONDREPORT QTR 4 2016 % CHG (YR) QTR 1 2017CO-OP MARKET MATRIX QTR 1 2016 QTR 1 2017 % CHG (QTR)Avg Price $1,210,224 -1.84% $1,232,948 -6.92% $1,300,221Median Price $770,000 +1.99% $755,000 -0.65% $775,000Avg Price per Sq Ft $1,079 -0.59% $1,086 -5.33% $1,140Studio (median) $450,000 +1.12% $445,000 +1.56% $443,0801 Bedroom (median) $697,500 -2.45% $715,000 +1.09% $690,0002 Bedroom (median) -4.06%3+ Bedroom (median) $1,300,000 0.00% $1,300,000 -14.10% $1,355,000 $2,381,250 -10.65% $2,665,000 $2,772,000 CO-OP SALES Co-op March 2016 - March 2017 Pending Sales +16.5% and Active Listings +4.6%The co-op market data also demonstrateda shift similar to the one seen in the condo 21201000market with respect to price action. Quarter1, 2017 prices showed decreases or very 20200000 AAPPRR MMAAYY JJUUNN JUJULL AAUUGG SSEEPP OOCCTT NNOOVV DDEECC JAJANN FFEEBB MMAARRlittle change both year-over-year and 19109000quarter-over-quarter. By size, 3+ bedrooms 18108000showed the largest median decrease of 1710700010.65% quarter-over-quarter and a 14.10% 16106000decrease year-over-year. The average price 15105000marketwide for co-ops in Quarter 1, 2017 14104000was $1,210,224, down 6.92% year-over- 13103000year. The 2 bedroom category showed no 12102000change, maintaining a median price of 11011000$1,300,000. MMAARRPending sales were up 12.6% withinQuarter 1, 2017 reaching the lowest levels Pending Sales: +16.5% Active Listings: +4.6%in the first week of February at 1,238 andreaching peak levels at the end of the quarter Co-op Within Quarter 1 2017at 1,496. Pending sales were up 16.5% from Pending Sales +12.6% and Active Listings +29.5%last year. Quarter 1, 2017 also showed anincrease of 29.5% since last year. 2000 1900 1800 1700 1600 1500 1400 1300 1200 FEB MAR JAN Pending Sales: +12.6% Active Listings: +29.5%MONTHLY CONTRACT ACTIVITY Closed Sales By Size Year-Over-Year 51.8% FROM LAST MONTH 50% 26.0% FROM LAST YEAR 40% 30% 20% Oct 10% QTR 1 2016 QTR 1 2017 0%Source: UrbanDigs.com Studios 1 Beds 2 Beds 3+ BedsPercentages Are Rounded.

BONDREPORT QTR 1 2017LUXURY MARKET: A VIEW FROM THE TOPThe luxury market is defined as the top 10% of all co-ops and condo transactions. The entry threshold for Quarter1, 2017 was $4,300,000. The average price for closed sales was $9,248,929, up 10.02% year-over-year. The medianprice was $7,127,750, up 8.53% quarter-over-quarter and up 6.09% year-over-year. The average price per squarefoot was $3,085 up 4.39% quarter-over-quarter and up 6.69% year-over-year.LUXURY MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016Avg Price $9,248,929 -2.14% $9,451,092 +10.02% $8,406,954Median Price $7,127,750 +8.53% $6,567,712 +6.09% $6,718,424 +4.39%Avg Price per Sq Ft $3,085 $2,956 +6.69% $2,8925-10 10+MILLION MILLION PENDING / ACTIVE PENDING / ACTIVECONDO CONDOPending Sales: +27.7% From Last Year Pending Sales: +1.8% From Last YearActive Listings: +6.2% From Last Year Active Listings: -2.0% From Last YearCO-OP CO-OPPending Sales: 0.0% From Last Year Pending Sales: -25.0% From Last YearActive Listings: +15.8% From Last Year Active Listings: -18.4% From Last Year500 250400 200300 150200 1001000 50 Pending Sales Active Listings 0 Pending Sales Active Listings Condo Co-op Condo Co-opSource: UrbanDigs.com BONDNEWYORK.COMPercentages Are Rounded.

BONDREPORT QTR 1 2017TOWNHOUSE SALESThe townhouse market is priced differently than any other submarket as a result of each individual property’s uniquecharacteristics. This submarket is also the smallest market with the least amount of transactions. As a result, thenumber of transactions are fewer and the data reflects this. The average townhouse price for Quarter 1, 2017 was$6,760,905. The median price was $5,100,000. The average price per square foot was $1,334.TOWNHOUSE MARKET MATRIX QTR 1 2017 % CHG (QTR) QTR 4 2016 % CHG (YR) QTR 1 2016Avg Price $6,760,905 +30.55% $5,178,936 +5.52% $6,407,000Median Price $5,100,000 +4.08% $4,900,000 -16.52% $6,109,000Avg Price per Sq Ft -3.44% -27.27% $1,334 $1,382 $1,835ACTIVE LISTINGS PENDING SALES DAYS ON MARKET 26.8% Year To Date 34.6% Year To Date 3.4% Year To Date 7.2% From Last Month 29.6% From Last Month 0.0% From Last Month 6.0% From Last Year 5.4% From Last Year 13.3% From Last Year ACTIVE TOWNHOUSE LISTINGSUPPER WEST SIDE: UPPER EAST SIDE: 7.7% Year To Date 5.6% Year To Date 27.3% From Last Month 13.6% From Last Month 3.7% From Last Month 46.2% From Last MonthWEST VILLAGE: EAST VILLAGE: 45.5% Year To Date 49.1% Year To Date 33.3% From Last Month 2.5% From Last Month 100.0% From Last Month 28.1% From Last MonthGREENWICH VILLAGE: 77.8% Year To Date 23.1% From Last Month 33.3% From Last Month BONDNEWYORK.COM Source: UrbanDigs.com Percentages Are Rounded.

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