(Read more on the multifamily market.)
NEW YORK CITY-Led by strong condominium sales, the average price for Manhattan apartments reached $1.3 million in the second quarter of 2007, a new record, according to a second quarter market report by Brown Harris Stevens. The previous high was set during the second quarter of 2005.
"The average price increased 7% from just three months ago," notes Gregory Heym, chief economist for Brown Harris Stevens. "The median price also achieved a new record, reaching $840,000. This was 9% higher than the prior record, which was set in the first quarter of 2007."
The 3,469 sales closed in the second quarter were 31% higher than a year ago, according to the report. "While part of this increase is attributable to a 9% rise in the average size of condos sold, on a per-sf basis, the average condo price was still 15% higher than a year ago," Heym says. "Also bolstering condo prices higher was strong activity in new developments, which accounted for just under half of all condo sales."
According to the report, the East Side has been driven by luxury apartment's growth, which increased 23% when compared to the second quarter of 2006. In the West Side market, the average price of apartments also increased with the most significant gains seen in four-bedroom and larger apartments which rose 25% from the second quarter of 2006. Apartments of all sizes Downtown posted double-digit gains in average price when compared to the same period a year ago, led by the strength of new development condos.
Demand remains strong, and apartment prices continue to rise in Manhattan, Heym explains. "The momentum in the marketplace that began at the end of 2006 continues to grow, fueled by a robust economy and record Wall Street bonuses," he says. "With supply falling back from the high levels of last year, price growth should continue despite recent rises in long-term mortgage rates which still remain at historic lows."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
