Miller Samuel and major Manhattan brokerage firms released Apartment sales data this week for the first quarter of 2008.
The average price of a Manhattan apartment rose 33.5% to $1,700,00 from the same quarter a year ago.
- The average price of a Manhattan coop rose to $1,300,000 from $996,000 a year ago
- The average price of a Manhattan condo rose to $1,900,000 from $1,300,000 a year ago
- The median price of a Manhattan apartment rose to $917,000 up from $840,000 lasy year.
- The median price of a 1 Bedroom apartment rose 12% to $750,000 from $699,00 last year.
- 4 Bedroom plus coops rose 86% to $12,900,000 from $6,900,000 last year.
While prices are up sales are slowing and inventory is rising. During the 1st quarter of 2008 71 apartments sold for more than $10 million compared to only 17 in all of 2007. 15 Central Park West and The Plaza had closings this quarter with record breaking sale prices skewing the price averages higher. Many of these units were in contract for a year.
Prices rose throughout Manhattan including Upper Manhattan's Hamilton and Washington Heights.
Brokers have reported that some Bear Sterns executives have put their apartments on the market. While there has been some fallout from Wall Street there is strong activity from foreign buyers.
In the past when the financial sector has a bad year Manhattan real estate suffers. However, the rest of our local economy is strong and Manhattan real estate has never been this attractive to foreign buyers because of the weak dollar. Foreign buyers primarily buy condos since most coops do not allow foreign ownership. Some coops have recently changed their rules to permit foreign shareholders.