Luxury takes a dip but prices continue to rise.

Manhattan apartment prices averaged $1,115,521 in July, 4% higher than a year ago, according to Halstead Property, LLC's monthly market report for July 2005.

"While this represents a 16% decline from last month, it is important to note that the average price can fluctuate greatly from month to month, based on what type of apartments sell," said Diane Ramirez, president of Halstead Property, LLC.

"Also, the market usually levels off at this time of year once the spring buying season ends, as was the case in 2004."

The median price, a more stable indicator of the market, posted at 12% increase over the past year to $725,000, the third highest figure ever. "The disparity between the growth of the average and median prices indicates that the luxury market is accounting for a decreasing percentage of sales, while the overall market remains strong," noted Gregory Heym, chief economist of Halstead Property, LLC.

Mr. Heym also noted that both cooperative and condominium prices remain substantially higher than during July of 2004. The median price per room for co-ops was up 27% over the past year to $182,952 for postwar units, and 24% to $199,167 for prewar units. For condos, the median price per square foot rose 20% to $1,007 for postwar and 12% to $1,036 for prewar units.

While down slightly from last month's record level, the median price per square foot for lofts in July of $925 was the second highest ever, and 17% higher than a year ago.

The report cites a number of additional important area market facts:

* On the East Side, pricing gains continue to lead by studios. Their median price of $342,250 was 24% higher than a year ago. One-bedrooms also posted strong gains, as their median price rose 17% during this time to $574,000.

* All sizes of apartments on the West Side saw their median prices rise sharply from July of 2004, led by two-bedroom units. At $1,295,000 the two-bedroom median price was 41% higher than a year ago. One-bedrooms were also hot, with their median price climbing 35% over the past year to $675,000.

* In the Downtown market, the median price for one-bedrooms was $625,000 during July, 30% higher than the same period in 2004. The next largest increase was for two-bedroom units, up 24% in median price during this time to $1,150,000.

Data for the report is provided by ValuExchange, a proprietary database that contains the transactions of all Terra Holdings companies including Halstead Property and Brown Harris Stevens. In addition, data is collected from Vanderbilt Appraisal, the second largest appraisal firm in Manhattan, and from public records.