Manhattan Prices Remain Strong

Indicators out of New York show that apartment sales in Manhattan continue to defy the trends in the rest of the United States and are setting new records. According to recently released statistics from four major New York City real estate firms, as reported in the New York Times, average prices for the fourth quarter of 2007 were up 17.6% from a year earlier. That means that the average sale price for an apartment in Manhattan was $1.4 million USD during the quarter, an all time high.

 

These record prices came from the buyers of some of the most expensive property in the world. Apartments that sold for $10 million or more tripled over the past year, with sales at two premier addresses driving much of those sales. The Plaza hotel, which is converting many of its floors to condominium apartments, and 15 Central Park West, helped to drive the sale of condos, which tend to be more expensive than co-op apartments.

 

While the price records are being driven by high-end properties that are going for astronomical amounts, other indicators show that the overall market is still strong. The number of apartments sold during the fourth quarter rose by 3.2% from a year earlier. Apartments also sold 18 days faster and the overall inventory was down by 13.5 %.

 

One real estate firm indicated that they are seeing gains across the board, not just in the high end properties. Diane Ramirez, President of Halstead Properties, notes that: “The marketplace is not being held afloat by just the high end,” and that “We have great demand across the board.”

 

While the market in Manhattan remains strong, predictions for 2008 indicate it will slow a bit from the previous years, although it shouldn’t take a tumble as in some places. Dottie Herman, the president of Prudential Douglas Elliman says: “I’m forecasting that the market will be flat” in 2008. For some would-be buyers, that is a sign that now is the time to get in before prices rise quickly again.

 

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