Manhattan Real Estate Market’s performance in the second quarter 2012 can be categorized as very stable, with both stable prices and activity.
The average price per square foot of a Condo increased 1.6% from the prior-year quarter. In addition, there was a shift from sales of Condos to Coops, with an overall activity being level with the prior year quarter. With interest rates at record lows, the market saw a shift to lower priced entry-level apartments.
A major theme that continues to play out is the lack of available inventory, as Condo inventory available for sale declined by 15% over the prior-year quarter. With the lack of new development inventory entering the market, we expect that this trend will continue and, ultimately, could cause some price action in the near future.
Luxury properties fared quite well in the quarter with price increases (the average price per square foot rose 7.4%) and stable activity. During the quarter, it was announced that the duplex penthouse at One 57 went into contract for over $90 million, the highest amount ever paid for a residence in Manhattan.
To find out more about the Manhattan Market in the second quarter, see the Manhattan Market Report.