January 31, 2013
New York Post
After the crash, Manhattan home prices still sky high
by JENNIFER GOULD KEIL
Even after the economic crash, you still can’t afford to buy a home in Manhattan.
The average sale price of apartments of all types soared 66 percent in the past decade, from $850,340 in 2003 to $1,417,080 last year, a new Douglas Elliman study found.
It was actually worse back in 2008 when the economy was tanking — and the average sales price was just under $1.6 million.
The average rose a paltry 0.7 percent last year but get ready for a jump because there’s so little housing on the market.
“Inventory is at or near record lows in most neighborhoods,” said analyst Jonathan Miller, who prepared the report. “It’s a national phenomenon as tight credit continues to keep sellers, who don’t qualify as buyers, from listing their properties.” Lois Weiss Condos in Battery Park City went up 10.7 percent per square foot last year.
As a result, the listing inventory plunged 34.2 percent to the lowest level in 12 years.
“The upward pressure on housing prices starts now,” Miller said.
Average prices for condos and co-ops are 12 percent from the 2008 peak. And townhouses are down a stunning 25 percent.
Bust since 2009 the Manjattan real estate market has become much less volatile.
The number of sales increased by a modest 3.4 percent to 10,508 last year, compared with 10,161 in 2011, 10,060 in 2010 — and only 7,430 in 2009.
“For the past three years Manhattan has shown remarkable stability in terms of sales and prices, making it one of the best performing housing markets in the US,” Miller, of Miller Samuel Inc., said/
But there’s a lot of fluctuation from neighborhood to neighborhood in sales prices, the study found.
For example, condos in Battery Park City went up 10.7 percent per square foot last year and co-cops in Greenwich Village soared 9.8 percent.
But co-ops in Lincoln Center fell 10.1 percent per square foot, thanks to an addition of new units. Co-ops on East End Avenue dropped 18 percent.
“We often think of Manhattan as a single market when in fact it is a collection of different neighborhoods and price points that have behaved differently over the decade,” Miller said.
Original Article // nypost.com
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