Regional Spotlight: Manhattan Residential Market Continues Gains

RISMEDIA, Jan. 4, 2008-The just-released Fourth Quarter 2007 Prudential Douglas Elliman Manhattan Market Overview reveals that the overall Manhattan real estate market continued to see gains in most market indicators, consistent with the prior three quarters including increased price levels, increased number of sales and a decline in inventory as compared to the same period in 2006, despite weakness in other U.S. metropolitan markets.

Price levels were generally up this quarter, with the greatest price gains seen in larger apartments, specifically 2-bedroom and 3-bedroom units with a 22.1% and 39.8% gain respectively over the same period last year, with a portion of the increase in price attributable to an increase in the size of the units actually sold.

“The New York City residential marketplace has seen no decline,” says Dottie Herman, president and CEO, Prudential Douglas Elliman. “Even if Manhattan sales stay at this level, which I expect they will, buying here is a homerun. From an investment angle, you just can’t beat this New York City market.”

“Like the preceding three-quarters of 2007, Manhattan has continued to benefit from a weak dollar and a solid economy,” says Jonathan Miller, executive vice president/director of Research, Radar Logic Inc., the firm that prepared the report.

Highlights from the 4th Quarter Prudential Douglas Elliman Manhattan Market Overview include:

– The median sales price increased 6.4% to $850,000 over the prior year quarter result of $799,000 (1.7% below prior quarter result of $864,397).
– The average price per square foot increased 18.2% to a record $1,180 over the prior year quarter result of $998 (3.1% above the prior quarter result of $1,144).
– The average sales price increased 17.6% to a record $1,439,909 over the prior year quarter result of $1,224,840 (5.1% above the prior quarter result of $1,369,486).
– The number of sales increased 3.2% this quarter to 2,518 units as compared to the 2,441 units sold in the prior year quarter.
– Listing inventory fell 13.5% to 5,133 units from the prior year quarter total of 5,934 units. — Days on market was 131 days this quarter, faster than the 149 days seen in the same period last year but 8 days slower than the 123 days last quarter.
– Listing discount was 2.7%, was essentially unchanged from 2.8% in the same period last year, but higher than the 2% last quarter.

Co-op Market

The median sales price of a co-op this quarter was $675,000, up 3.8% from last year at this time. Average price per square foot increased 21% and average sales price increased 9.1% from the same period last year reflecting higher price gains at the upper end of the market.

Inventory levels for co-ops fell 26.2% to 2,254 units as compared to the prior year quarter total of 3,054 units. Co-op listings are comprised of nearly all re-sales.

Condo Market

The median sales price of a condo this quarter was $1,100,000 this quarter, up 6.8% from last year at this time. Average price per square foot and median sales price showed 10.6% and 17.8% gains respectively from the prior year quarter reflecting higher price gains at the upper end of the market.

Inventory levels for condos totaled 2,879 units, unchanged from the prior year quarter total of 2,880 units. New development added to the market offset the decline in re-sale listings.

Luxury Market (upper 10% of all co-op and condo sales)

The median sales price of a luxury apartment this quarter was a record at $4,300,000 this quarter, up 28.4% from last year at this time and up 8.9% from the prior quarter. Average price per square foot and average sales price showed similar 29.8% and 32.8% gains respectively from the prior year quarter.

Loft Market (co-op and condo sales)

The median sales price of a loft apartment this quarter was $1,445,000 this quarter, up 3.6% from last year at this time. Average price per square foot and average sales price showed 18.3% and 11.3% gains respectively from the prior year quarter reflecting higher price gains at the upper end of the market.

For more information, visit http://www.prudentialelliman.com/.