City Real Estate Sales Set Records in Q4

The last quarter of the year saw a surge in Manhattan real estate transactions that set records for sales, inventory and high prices.

The Douglas Elliman Real Estate Overview found that pent up demand and concern over an increase in mortgage rates contributed to the flurry of activity.

"Mortgage rates spiked, and that brought people in who wanted to buy before interest rates went up further," said Jonathan Miller, President of CEO of Miller Samuel Inc., a real estate appraisal and consulting firm.

But Miller doesn't expect the real estate sales frenzy to spill over into 2014.

"I see continued upward movement in pricing in 2014, but at a very modest pace," he said.

The new mayoral administration of Bill de Blasio also brings unknowns that could affect the city's real estate market.

"Unknowns always cause people to pause, and housing is no exception," added Miller.