Sure, there are worries about the credit market and subprime mortgage situation, but real estate brokerages around the city are basking in good news: Third-quarter Manhattan apartment closings were at the highest average price ever and home inventory tightened as well.
The average price for a Manhattan apartment was $1.37 million and the average price for a condo is $1.6 million, with the different brokerage saying that it's anywhere from 16-38% higher than the previous average. Radar Logic's Jonathan Miller, who crunched data for Prudential Douglas Elliman, said, "The upswing is coming from the upper end of the market, the top 6 percent, namely 3- and 4-bedroom units." And the NY Times reports that Brown Harris Stevens and Halstead Property said prices for "nearly every type of apartment in almost every neighborhood of Manhattan, from bare-bones studios in the borough’s northernmost reaches to luxurious four-bedroom apartments on the Upper East Side" had risen. Even Brooklyn brownstone prices rose 11%.
Still, the firms warned that the effects of the credit crisis would not show up until later, especially if Wall Street suffers. But one significant way the NYC housing market differs from others is that the inventory is not as "insanely high" (as Brown Harris Stevens analyst Greg Heym put it) as other parts of the country. And Donald Trump explained the madness to the Post: "The difference is that it's a small island and there's not a lot of land."
Photograph of a crane at a Times Square condominium construction site by phrenologist on Flickr