Fourth quarter reports about Manhattan's luxury condo and co-op apartment market from leading brokerages indicate a slight improvement with increased sales and lower inventories.
In his report for Prudential Douglas Elliman, Jonathan Miller of Miller Samuel Inc., said that "there were 2,473 sales in the fourth quarter, up 8.4 percent from the 2,282 sales in the prior year quarter and up 10.9 percent from the prior quarter," adding that "This level of activity was more than twice the 1,195 sales seen in the first quarter of 2009, which had been lowest level of sales in nearly 15 years."
Mr. Miller said that "there were 6,851 active listings at the end of the quarter, a 24.6 percent decline from 9,081 listings in the same period a year ago," adding, however, that "this decline in listing inventory does not include the 'shadow inventory' of stalled new development projects, which is estimated to be in excess of 6,000 units."
Price continued "to show weakness," according to Mr. Miller, noting that "the median sales price of a Manhattan apartment was $810,000 in the fourth quarter, 10 percent below $900,000 in the prior year quarter."
"Buyers, sellers and real estate professionals have slowly adopted to changes including stringent, if not irrational mortgage underwriting, elevated unemployment and layoffs, lower compensation, a sharp price correction, shadow inventory, first time home buyers tax credit, rising foreclosures, declining appraisal quality, expanding marketing times and a host of other challenges. While the increased level of sales in the second half of 2009 was encouraging, a true housing recovery will be marked by a meaningful decline in unemployment and greater consumer access to credit," Mr. Miller maintained.
The Brown Harris Stevens report for the Fourth Quarter indicated that "co-op prices averaged $990,921," 10 percent lower than a year ago and "declines continued to be led by three-bedroom and larger co-ops" whose average sale price declined to $3,001,012 from $4,279,841 a year ago. Condos, on the other hand, the report continued, saw prices rise slightly from a year ago with "a 33 percent increase in the average price of three-bedroom and larger condos" to $4,574,080 from $3,443,710 a year ago.
It found that on the Upper East Side prices for studios fell 12 percent over the past year, while one-bedroom prices fell 19 percent, two-bedroom prices fell 22 percent and apartments with three or more bedrooms fell 20 percent. Prices on the Upper West Side, however, it continued, fell less.
The Halstead Property report found that the average price per square foot for condos on the Upper East Side fell to $1,168 in the fourth quarter from $1,378 the year before, and that the average price per room of pre-war co-ops there fell to $348,425 from $422,393 the year before while the average price per room of post-war co-ops there fell to $204,713 from $238,700.
On the Upper West Side, the Halstead report found that the average price per square foot of condos fell to $1,267 from $1,455 the year before and that the average price per room of pre-war co-ops there fell to $215,967 from $239,806 the year before while the average price per room of post-war co-ops fell to $189,264 from $216,967 the year before.
"This quarter there is reason to be hopeful that the significant devaluation we have tracked since the demise of Lehman Brothers is coming to an end. Values are still down significantly compared with 2008 (median prices are 15 percent lower than they were one year ago; average price per square foot is 17 percent lower). However, prices in the Fourth Quarter were essentially unchanged from the Third, suggesting that buyers and sellers reached price equilibrium after twelve months of downward pressure," Pamela Liebman, chief executive officer of The Corcoran Group, reported.
In his report for Prudential Douglas Elliman, Jonathan Miller of Miller Samuel Inc., said that "there were 2,473 sales in the fourth quarter, up 8.4 percent from the 2,282 sales in the prior year quarter and up 10.9 percent from the prior quarter," adding that "This level of activity was more than twice the 1,195 sales seen in the first quarter of 2009, which had been lowest level of sales in nearly 15 years."
Mr. Miller said that "there were 6,851 active listings at the end of the quarter, a 24.6 percent decline from 9,081 listings in the same period a year ago," adding, however, that "this decline in listing inventory does not include the 'shadow inventory' of stalled new development projects, which is estimated to be in excess of 6,000 units."
Price continued "to show weakness," according to Mr. Miller, noting that "the median sales price of a Manhattan apartment was $810,000 in the fourth quarter, 10 percent below $900,000 in the prior year quarter."
"Buyers, sellers and real estate professionals have slowly adopted to changes including stringent, if not irrational mortgage underwriting, elevated unemployment and layoffs, lower compensation, a sharp price correction, shadow inventory, first time home buyers tax credit, rising foreclosures, declining appraisal quality, expanding marketing times and a host of other challenges. While the increased level of sales in the second half of 2009 was encouraging, a true housing recovery will be marked by a meaningful decline in unemployment and greater consumer access to credit," Mr. Miller maintained.
The Brown Harris Stevens report for the Fourth Quarter indicated that "co-op prices averaged $990,921," 10 percent lower than a year ago and "declines continued to be led by three-bedroom and larger co-ops" whose average sale price declined to $3,001,012 from $4,279,841 a year ago. Condos, on the other hand, the report continued, saw prices rise slightly from a year ago with "a 33 percent increase in the average price of three-bedroom and larger condos" to $4,574,080 from $3,443,710 a year ago.
It found that on the Upper East Side prices for studios fell 12 percent over the past year, while one-bedroom prices fell 19 percent, two-bedroom prices fell 22 percent and apartments with three or more bedrooms fell 20 percent. Prices on the Upper West Side, however, it continued, fell less.
The Halstead Property report found that the average price per square foot for condos on the Upper East Side fell to $1,168 in the fourth quarter from $1,378 the year before, and that the average price per room of pre-war co-ops there fell to $348,425 from $422,393 the year before while the average price per room of post-war co-ops there fell to $204,713 from $238,700.
On the Upper West Side, the Halstead report found that the average price per square foot of condos fell to $1,267 from $1,455 the year before and that the average price per room of pre-war co-ops there fell to $215,967 from $239,806 the year before while the average price per room of post-war co-ops fell to $189,264 from $216,967 the year before.
"This quarter there is reason to be hopeful that the significant devaluation we have tracked since the demise of Lehman Brothers is coming to an end. Values are still down significantly compared with 2008 (median prices are 15 percent lower than they were one year ago; average price per square foot is 17 percent lower). However, prices in the Fourth Quarter were essentially unchanged from the Third, suggesting that buyers and sellers reached price equilibrium after twelve months of downward pressure," Pamela Liebman, chief executive officer of The Corcoran Group, reported.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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