Since 2003 I have provided a chart that appears once a month in the Economic Spotlight section of Crain’s New York Business magazine. Here is this month’s chart appearing in the current issue of [Crain’s New York Business](http://www.crainsny.com).
Source: Crain’s New York Business
Go here for a complete archive of all my Crains’s New York Economic Spotlight charts. They are organized by year.
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Wow, that’s amazing stability for the year.
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Mark Ballard
RE/MAX West in Boise, Idaho
This stresses me out. How come co-ops had such a large drop during the 2nd half of 2006? Just a matter of what sold, and where (affecting the average price) or was price per square foot down, as well? Or, is Manhattan shifting to condo ownership so quickly that co-ops are not as popular, and sellers have had to lower their prices? Or, now that co-op sales prices are more readily available, are buyers getting better prices?
Jonathan?
Chill John. 😉 I think it was more of a combination of the shift in mix to smaller units for co-ops as mortgage rates slipped since they are the main point of entry for first time buyers. I also have a contrarian theory that could suggest co-ops benefited (as mostly existing units rather than new development) from being adjacent to new developments and their new pricing levels and might be slightly more vulnerable to market weakness than new development in many cases (not sure about this theory yet). Also condos, despite their entry to the market in large numbers, seem to be holding up acceptance as evidenced by their 50% market share of sales despite their 25% versus 75% market share of the housing stock.
Does your Co-Op price data adjust for the presence of a common mortgage?
Sometimes you are only buying half the unit with your own mortgage, with maintenance covering the rest. It makes it hard to compare.
You are right, you don’t use co-ops as a comparison to price a condo, and vice versa. Co-ops and condos are different markets and shouldn’t typically be compared with each other. In other words, they behave differently. The amount of the underlying mortgage is implicit in the monthly mortgage payments of a co-op and even if you extract the underlying mortgage they are not on an even playing field either. Check out this paper I co-authored with NYU (just accepted for publication in the Journal of Legal Studies at Univ of Chicago.)