A quarterly survey of more than 2,000 Manhattan co-op and condo sales.

For the first time in this report series, dating back to 1989, prices in all categories set records and saw double-digit gains over the prior quarter. The driving factors include a continued constraint on inventory, the effects of the 10-15% average increase in bonus income in the financial services sector over the past year, general improvement in payroll and employment levels and perhaps, most importantly, concern over the anticipated rise in mortgage rates. This rise has been expected since the fall of 2003. In June of 2004, the Federal Reserve began a series of rate increases that were designed to keep inflation in check. During this period, however, long term rates such as mortgages actually began to fall. The mixed but generally improved economic outlook in the middle of the current quarter seemed to correspond with a 50 basis point increase in long term rates at the end of the quarter...

The 1Q 05 Manhattan Market Overview incorporates the Uptown market in both its current and historical data

The coverage of the Manhattan real estate market was expanded to include the entire island, the first time this has been accomplished. Uptown, which includes all geographic areas not previously analyzed in this report, contains the markets of Harlem, East Harlem, Morningside Heights, Hamilton Heights, Washington Heights, Fort George and Inwood. These markets are located north of West 116th Street and East 96th Street to the northern tip of Manhattan.

The average sales price of a co-op and condo apartment on the entire island exceeded $1,000,000 for the first time to $1,004,232, an increase of 18.1% above the prior year average of $850,340. The average price per square foot set a record of $767 per square foot which is 14.1% above the $672 price per square foot record set last year. Median sales price, the mid-point of all sales prices in the survey, exceeded $600,000 for the first time, reaching $605,859 for the year, a 22.4% increase above the prior year level of $495,000.

Nearly 80,000 co-op and condo sales transactions from more than 6,400 buildings over the last ten years were analyzed. Each of the 49 different market areas was analyzed with data tables and charts as well as a summary matrix with prior year and prior decade comparisons. This report is available as a download only (pdf).

Over 1,000 residential townhouse transactions were analyzed over this ten year period. 1, 2 and 3-5 (delivered vacant) family houses comprised the data set.

The average sales price of a Manhattan townhouse, defined as a 1-5 family property that could be delivered vacant, increased 10.1% this year to $4,041,650, breaking through the $4,000,000 threshold for the first time and setting a new record. This price is essentially double the record seen in 1998 when the average sales price at $2,021,767 exceeded $2,000,000 for the first time.