Wed, 26 Sep 07
Manhattan property prices rose steadily in the first quarter of 2007, reversing a slight decline in the fourth quarter of 2006, CNN money reports...
Estimates of the average price of a
Those prices represented increases of between 4 percent and 13 percent compared with the third quarter of 2006.
One of the major contributing factors in the recent rise would appear to be huge year-end investment bank bonuses - a total of $23.9 billion - pouring into the housing market,
"The first thing we should do is thank Wall Street," said Tresa Hall, executive vice president of the Corcoran Group.
Given the increased activity, prices would have risen even more but for steady gains in supply, according to Jonathan Miller of the property appraisal firm, Miller Samuel, which does analysis for the Prudential Douglas Elliman report.
"Continuing new construction has come onto the market like a conveyor belt," Miller said.
Even with that continuous renewal, the housing supply has only kept pace with sales - inventory fell 0.2 percent during the quarter, according to Miller.
The luxury apartment market is particularly strong, as is the market for big apartments. The average price of four bedroom and larger apartments was $7.9 million, according to Brown Harris Stevens.
According to Prudential Douglas Elliman, three bedroom apartments averaged $3.6 million, more than twice as much as two bedrooms, which cost an average of $1.5 million.
"Large apartments are in such demand," said Diane Ramirez, Halstead's president, "and if you can combine two apartments, even better."
The strong market has bucked national trends. National home prices in the fourth quarter were down 2.7 percent from a year earlier.
No place like home
A generation ago, much of
In addition, many of the middle class New Yorkers who fled the city did so to find affordable homes in safe communities with good schools. The near suburbs, however, have filled up and that's reflected in home prices; there is no longer a huge savings there, according to Miller.
Crime is no longer an issue in most of
As for schools, Census Bureau figures, as reported in the New York Times recently, revealed a 32 percent increase in young children in
Population set to rise by 1 million
Conditions seem to be in place that will keep
Greg Heym, an economist with Halstead Property, agrees that the fundamentals point to a strong
"We had several years in the early 2000s where Wall Street limped along," he says, "where housing markets stayed very hot."
So even if financial markets slow again, according to Heym, that doesn't necessarily mean
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