MANHATTAN APARTMENT PRICES REFLECT MARGINAL SOFTENING
Prices for Manhattan apartments exhibited stability during the third quarter of 2008, although some sectors showed signs of softening. The average price of $1,473,351 was 12% higher than a year ago, but down slightly from the previous quarter. While the number of closings decreased by 14% compared to the same period a year ago, the median price of $910,000 posted a 12% increase from the third quarter of 2007, and was the second highest figure on record.
“Softening prices are signaling a gradual market shift in Manhattan, however the result should be more balance and ultimately a healthier marketplace,” said Hall. F. Willkie, president of Brown Harris Stevens. “In recent years we have seen record growth and high-end developments, such as 15 Central Park West and The Plaza, which sharply drove up average prices. Yet despite today’s turmoil in the financial services sector, our real estate market fundamentals are still solid, reinforced by limited inventory, a low percentage of investor-owned properties and tremendous equity due to cooperatives restricting financing.”
The market share of new developments increased once again, and comprised 39% of apartment sales and 70% of condominium sales during the third quarter of 2008. These new development units posted an average price of $1,669,216. The condominium average price overall was $1,651,677; however if 15 Central Park West and The Plaza are factored out, the adjusted figure of $1,541,806 represents a 7% decrease from the previous quarter.
The average price for cooperatives during the third quarter of 2008 was $1,199,909, a decline of 7% from the previous quarter but up 14% from the same period a year ago. The median price of $680,000 was positive gain of 6% compared to the third quarter of 2007.
—The East Side saw four closings of over $30 million during the third quarter of 2008, driving the four-bedroom and larger average price up by 95% when compared to the previous year.
—Average sale prices for West Side apartments, in all size categories, posted gains from the third quarter of 2007, led by a 13% increase in average price for one-bedrooms.
—Studios, one-bedroom and two-bedroom apartments Downtown all increased in average price when compared to the same period a year ago.
Transaction data for this market report is provided by ValuExchange, a proprietary database containing the largest known survey of the Manhattan residential market. This report is based on 3,165 reported Manhattan apartment sales.
