Streams

Manhattan Real Estate Shows Gradual Signs of Recovery

Tuesday, January 04, 2011

The average price of a Manhattan apartment ticked up in the last quarter of last year, according to data from a major real estate brokerage, which means it looks housing is recovering -- slowly.

One of the key indicators real estate experts look to as a growth indicator is the median sales price. Last quarter it was $845,000 -- an increase of four percent from the previous year.

That suggests prices are rising, but appearances can be deceiving. What's happening, according to independent appraiser Jonathan Miller of the firm Miller Samuel, is that more larger -- and more expensive -- were apartments sold, while fewer studios and one bedrooms changed hands. 

"I think it was more of a skewed mix thing than it was prices really rising," Miller said.

Nevertheless, this points to a housing market that is stabilizing. Miller said in a recovery, smaller apartments tend to sell first. That's already happened. Then, bigger ones change hands. And that's what's happening now.

[we have to think of a new word for normal, cause I don't know what normal means. But what we're seeing is just general levels of pricing and activity that is consistent with what we would expect.]
For example, nearly 2,300 apartments sold in Manhattan in the fourth quarter, close to the 10-year average.  But that's far below the sales volume in the bubble years of 2006 and 2007.
Miller says the stabilization of Manhattan's real estate market has happened even with limited access to credit and high unemployment.
Back to normal? Miller rejected the word.
"We have to think of a new word for normal, 'cause I don't know what normal means. But what we're seeing is just general levels of pricing and activity that is consistent with what we would expect," he said.
For example, the number of apartments sold in Manhattan in the fourth quarter was close to the 10-year average but lower than the sales volume in the bubble years of 2006 and 2007.
Miller said limited access to credit and high unemployment are hindering a full recovery.

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Comments [4]

sam

Manhattan RE is going to crash even worse than most cities around the country. one reason the prices are still up is that banks haven't gone full scale for foreclosure. Developers also are still and waiting to see. over 75% of vacant apts that are slated to be sold aren't yet put on the market because of this wait and see strategy. I predict prices will drop by 50% at least. if you have cash, just sit and wait till around dec or early next year.

Apr. 28 2011 06:31 PM
MMG from Manhattan, NY

I didn't think the market was hit too hard because of supply and demand. Call Manhattan real estate over-priced if you absolutely must. But the truth is that Manhattan real estate is and has always been priced appropriately. People who can't afford it will go to Jersey or Brooklyn, but most people know it's worth it. I used www.mmgnyc.com and they helped me find a great place and I'm willing to pay.

Feb. 23 2011 10:36 AM
BrodskyOrg from New York, NY

I've personally seen a growing interesting the the <a href="http://brodskyorg.com/rentals.htm"> Manhattan apartments</a>I have listed. I think the market will be back to normal, or even better than it was, in no time!

Feb. 11 2011 02:40 PM
RBC from FiDi

The only thing hindering Manhattan real estate are the prices. This is the only borough where the supply has gone up with idle demand, yet the price has remained the same. When you charge $1000+ per square foot in a city with 9.2% unemployment, of course the real estate market will go nowhere.

Jan. 04 2011 10:41 AM

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