From Bloomberg:
Manhattan Apartment Prices Increase at Slower Pace
Manhattan’s median apartment price rose 1.2 percent in the first quarter from a year earlier, the smallest quarterly gain in five years, appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate said.
The median price of all co-ops and condominiums in Manhattan, the most expensive urban real estate market in the U.S., rose to $835,000. The growth was the slowest since the first quarter of 2002, said Jonathan Miller, president of Miller Samuel, the New York borough’s largest appraiser. Units with at least four bedrooms surged 11 percent to a median $6.45 million, while studios and apartments with less than four bedrooms fell 1.2 percent to 2.8 percent.
“The market definitely is taking a breath,” said Tresa Hall, executive vice president and director of sales for The Corcoran Group, the New York real estate brokerage, which released its own report today.
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Manhattan’s prices were the third-highest ever and reflect sales of 3,474 apartments. They were higher in the second and third quarters of 2006, the peak of the city’s five-year housing boom.
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Co-operative apartments in Manhattan, where residents own shares in a corporation that owns their building rather than having title to the apartment itself, make up about two-thirds of the Manhattan market. Their median price rose 1.5 percent to $675,000 for the quarter ending March 31 compared with a year earlier.
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Overall, the median price of studio and one-bedroom apartments fell 2.3 percent to $390,000 and $635,000, respectively, while the price of two-bedroom units fell 2.8 percent to $1.3 million and three bedrooms declined 1.2 percent to $3.1 million, Miller Samuel said.
From the NY Post:
bustling local economy, stabilized mortgage rates, and strong demand for New York real estate have brought the city’s residential sales market out of its yearlong doldrums.
The latest quarterly reports, compiled by the city’s top real-estate brokerage companies, show that residential sales in Manhattan have jumped nearly 50 percent from the first quarter of 2006.
“It’s a great start to the year,” said Tresa Hall, executive vice president of sales for the Corcoran Group. “We’re joyous about the numbers. To say we’re optimistic would be an understatement.”
Hall adds, however, that this time of year is generally the most active for real estate in the city.
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The most impressive number was a 73 percent increase in sales reported by the appraisal firm Miller Samuel, which crunched the numbers for Prudential.“About a third of that is attributable to co-ops entering the public domain for the first time,” explains Jonathan Miller. “But even that’s still a big jump.”
Manhattan typically has a unique dynamic, because of its international appeal. But just look in the outer boroughs, and the picture is very different. Where I live in the North Bronx, for sale signs go up, stay up, and new ones go up all the time. And prices keep shifting down – 600K-500K, 500K-400K and so on.. Yet new construction continues, and has tied up all the available green space that should have been earmarked for desperately needed playground/community space.
I was just wondering what’s going to happen to the co-op and condo market, because it seems like they’re available in the thousands, and now there seems to be a trend toward trying even to rent them out.
We’re renters looking to be first time buyers, and for a time I thought about going into a condo, for convenience and affordability. Now I wonder how hard it would be to re-sell…
Any thoughts out there?
Even though this is affecting mostly poor neighborhoods at the moment, still have to wonder what will be the domino effect from this whole subprime mess –
Set up for a fall
More than 9,000 New York City home owners faced foreclosure last year – an astounding 50% increase over 2005 – and that number has skyrocketed even higher during the first months of this year.
The latest local foreclosure numbers “debunk the myth that New York City has been spared the impact of this crisis because of our strong housing market,” said Sarah Ludwig, executive director of NEDAP.
http://nydailynews.com/news/2007/03/28/2007-03-28_set_up_for_a_fall-3.html
Looking Do nto go the co-op/condo market, in market down turns they get slammed.
A f amily member had a co-op in Scarsdale that he purchsed at the peak of the lst market for 125K, sold it for 42k.
As far as the north Bronx it was probably one of the last areas that rode the boom, and yes prices are falling.
I remember in 04,05 when shacks in City Island and Coutnry Club were getting 600k or more, now the market is dead.
Also amazed at the amount of houses going into foreclosure in City Island and Country Club.
Be patient, and watch this thing play out, it will make the last down turn look like a hi-cup.
Wow, I can’t believe the drop in Scarsdale!
That’s scared me off, thanks for the heads up.
A lot of those condo owners will become reluctant landlords when they can’t sell their condos (since they don’t want to give them away….). Not only that, but they will be losing money (negative cash flow) on a depreciating asset. Not a position you want to be in.
#4 looking in ny That was at the peak of the last real estate bubble, which collapsed in the early 90’s. And yes I knowmany,mnay people who got severely burned.
Stay far, far awya from those glorified apartments.
I agree that NYC is certainly not immune. In Riverdale in the Bronx there are 8 or more new condos. I see them listed in the NYTs week after week after week. The same w SFHs. I follow certain homes and one particularly nice arts and crafts home has been on the market for around a year and a half asking 1.5 million and not budging. So even in the boroughs they still may have an attitude that they’re immune, but real estate is really not moving. These guys who won’t drop their prices are going to be hit hard.
Yeah, there’s a seller down the block from me who hasn’t budged his price of 545K since last July. For awhile, we were calling about it, then stopped when we realized he wasn’t planning on coming down in price.
It’s an OK house, mint inside, but it’s configured funny, and comparable to houses selling now at 475K or less.
Crack head mentality – delusions of grandeur and greed.
In Bay Ridge Brooklyn, apartments seem to have come down about 10% from Dec 05 peak. But they’re sticky right there and don’t seem to be going down further. I personally think prices will slowly drip down over the next four years or so. But they WILL go down. People can’t afford these prices, and the lenders aren’t going to just give money away like they used to.