April 3, 2007
Manhattan Apartments Keep Selling
If it's April, it's time to get quarterly real estate data. The NY Times reports that the "prices and number of apartments selling in Manhattan rose" during the beginning of the year. Brown Harris Stevens and Halstead Property say sales were up 12% versus 2006's 4th quarter. And in an amusing example of how different data can be, BHS and HP say prices rose 6%, but Prudential Douglas Elliman says prices rose 5.4% and Corcoran says they rose 12%.
The data also suggests that the price increases were greatest for the biggest Manhattan apartments and for Brooklyn apartments overall. Anyone who bought in Brooklyn a year or more ago, feel good: Apparently prices have increased by 22% there, "especially those in newly constructed or converted buildings."
And though prices have been rising, it's the many new apartment buildings that have added to inventory and kept prices from going up too much. Well, "too much" for the rich people - for regular New Yorkers, it's another story. Which is why thought this comic from Dustin Glick was apropos.
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If I am not mistaken, the percentages are based upon each firm's individual listings, not the market as a whole.
my rent just went up 9.3%. have fun after the brain drain, people! i am moving away from this city as soon as i can.
It makes me think that plenty of New Yorkers (Manhattaners) are careless with their money and simply a bunch of sheep.
There's no way this can continue what with all the new buildings going up and the interest rates going up as well. Banks will be less likely to give million-dollar loans, so prices HAVE to fall. And if Wall Street starts to falter, look out. Anyone with money in two years will be able to buy something that they otherwise would not be able to afford today.
J,
I agree with you completely.
I dont agree, but I sincerely hope that J is right. I'll start saving now!
J, I've been saying that for the last three years though, but of course I hope you're right!
You better be right. Scads of new apartments being built every day, and my boyfriend and I still can't get one! Damn it all, life isn't fair.
I'm smart!
Won't building lots of new, expensive apartments free up older housing stock, eventually driving down prices?
So many people are getting help from their parents to buy apartments. That source will dry up in the coming recession. It's been six years since the last recession, we're due. The average cycle in the 20th century was five years. One could argue that globalization has reduced inflationary pressures and gave us longer growth periods in the 80s and 90s. But recessions will never go away.
nisey79 - The report I prepare for PDE is based on market wide activity, not just their sales. The story this quarter was about the increase in activity, not further gains in housing prices.
They say the party can't last forever, but for some reason some people don't want to leave (until they're forced to). I wouldn't mind moving into one of those new luxury buildings when the rents become affordable. 2, 5, 10 years from now, who knows.
I wonder how much international investment is fueling these rises. With the dollar extremely weak, NYC real estate probably looks attractive to people who have strong buying power sheerly by dint of the Euro/Pound Sterling exchange rates.
How do these growth rates compare to last year? Is the rate of growth slowing?
I guess this is the new influx of wealthy folks moving into the city . My guess is that most of them will realize the cost and benefits of life in Manhattan and then flood the outer boroughs in search of cheaper apartments for rent .