Manhattan Still Strong Despite Weakness in Other U.S. Metro Markets
4th Quarter 2007 Prudential Douglas Elliman Manhattan Market Overview-Prepared by Radar Logic Inc.
NEW YORK, Jan. 3 /PRNewswire/ — 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.
— The report’s author, Jonathan J. Miller, CRP, Executive Vice President/Director of Research for Radar Logic Incorporated. Miller provides input for the Federal Reserve’s Beige Book, and serves on the NYC Mayor's Economic Advisory Panel and the NYC Council Finance Committee Economic Advisory Board. On Matrix (matrix.millersamuel.com), he blogs about the real estate economy.
— Dottie Herman is President & CEO of Prudential Douglas Elliman, the company that distributes the report. Prudential Douglas Elliman is New York City and Long Island's preeminent residential broker, with nearly 70 offices, over 3,300 real estate agents and a network of national and international affiliates. Herman is frequently quoted in The New York Times, The Wall Street Journal, Crain's, and The New York Post.
Full data tables and analysis are immediately available upon request.
ABOUT THE MANHATTAN MARKET OVERVIEW
The Manhattan Market Overview is New York’s first quarterly residential market report, and is developed from the largest and most sophisticated database of transactions in New York. The report was the first to track co-ops by price per square foot, to analyze square footage of all sales, to analyze the market by median sales price, to break out the market by bedrooms (Studio, 1, 2, 3, 4+), to analyze market-wide apartment inventory, to analyze days on market and absorption, to drop price per room as an obsolete market indicator, to break out sales by specific neighborhoods and to analyze the uptown co-op and condo market.
About Radar Logic Incorporated (www.radarlogic.com)
Radar Logic, the home of tradable real estate(SM), is a technology-driven data and analytics business that produces a daily “spot” price for residential real estate in U.S. metropolitan areas. To do this, actual transaction data are captured from public sources and translated into the Radar Logic Daily(TM) Prices. The Daily Prices, in turn, power the Residential Property Index(TM) (RPX(TM)) market, where derivatives and other financial instruments are offered and traded. RPX allows real estate and financial professionals to manage risk, invest in real estate without owning physical assets, and obtain more accurate insight into the residential property market. For more information on Radar Logic and the RPX, including licensed dealers, visit www.radarlogic.com.
SOURCE Radar Logic Incorporated
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