Diane M. Ramirez
Gregory J. Heym
Executive Vice President, Chief Economist
AVERAGE SALES PRICE OF MANHATTAN APARTMENT HITS NEW RECORD OF $1,430,514, INCREASING 34 PERCENT FROM A YEAR AGO
Substantial Increase due to Increased Activity at High End of the Market
Despite the continuing decline in the national housing market, the Manhattan residential market completed the year on a high note, with both the average sales price and the median sales price hitting new records. The average sales price increased 34 percent to $1,430,514, reflecting increased activity in the luxury market including The Plaza and 15 Central Park West. The median sales price rose 14 percent from a year ago, establishing a new record of $828,000.
“We continue to have a strong and stable residential market in Manhattan with new records and unbelievable closings in high-end new developments,” said Diane M. Ramirez, President of Halstead Property. “We have a tremendous demand from a wide range of buyers including new families, retired couples returning to the city and an increasing amount of foreign buyers looking to spend their money wisely. Right now, there is just not enough inventory to meet this demand.”
Halstead Property’s 4th Quarter Market Report also included the following data:
• The average cooperative price also set a new record at $1,074,369, which reflects a 21 percent increase from this same time a year ago. A leading factor in this increase was a 37 percent rise in the average price for four-bedroom and larger co-ops.
• New developments, most notably The Plaza and 15 Central Park West, helped bring the average condominium sales price to a record level of $1,851,709 during the fourth quarter. Sales prices at these two developments averaged almost $7 million during the quarter, and helped fuel the 51% increase in the average condo price over the past year.
• The average price per square foot for loft apartments of $1,170 was 9% higher than a year ago.
• Compared to a year ago, apartments sold 13 percent faster, averaging 84 days on the market.
• The average price per square foot in new developments was $1,464, up 20 percent from the 4th quarter of 2006.
• On the East Side, the average price in each size category posted an increase, led by a 41 percent gain in three-bedroom and larger units. The Chief Economist for Halstead Property, Gregory Heym, noted that this category can show large fluctuations in price from quarter to quarter.
• On the West Side, the average price for three-bedroom units rose 43 percent from a year ago to $4,024,097. This number was driven up significantly by closings at 15 Central Park West.
• In the Downtown market, nearly all of the size categories posted increases in prices except for three-bedroom and larger apartments. In particular, the two-bedroom units had the highest increase in price with an average of $1,664,691, or 28% higher than the fourth quarter of 2006.
• In Northern Manhattan, closings at the new development 111 Central Park North helped the average price for three-bedroom and larger apartments more than double from a year ago. These sales also pushed the median price for sales in Harlem up 56% during this time to $610,000. Closings at 111 Central Park North averaged over $2.2 million, which is much higher than the typical sale in this market.
The Halstead Property market report utilizes data provided by ValuExchange, which is a proprietary database containing the largest collection of closed sales data in New York. Based on 2,531 reported Manhattan apartment sales, the Halstead Property Market Report provides the largest and most comprehensive survey available on the real estate market.
Saturday, March 01, 2008