REBNY report: Manhattan co-op market still strong in 2001.

The median price per room increased for all sizes of Manhattan co-ops in 2001 from the prior year's figures, according to REBNY's Annual Cooperative Sales Report. The market's performance defied predictions that were made after the city suffered devastating terrorist attacks in the midst of a recession. Studio apartments appreciated most in these adverse conditions, signifying an appreciable number of first-time buyers entering the market.

REBNY executive vice president Deborah B. Beck said, "The appreciation of small apartments, notwithstanding the trauma of terrorism and a flagging economy, shows that Manhattan cooperative apartments remain an inviting investment, even in very difficult times."

Hall Willkie of Brown Harris Stevens, chairman of REBNY's Residential Research Committee, observed that "The cooperative market's resilience in 2001 reflected the city's morale as New York coped with unprecedented grief and economic disarray."

Studio co-op transfers set the pace for appreciation with a 32% gain as the median price per room for this sector climbed to $92,750 from $70,200 in 2000. Surprisingly, this index reached its highest point in the fourth quarter, proof that demand for these units continued to strengthen in the wake of Sept. 11's tragic events as the economy's downslide accelerated.

In line with that finding, the median price for apartments of all sizes rose from the third to the fourth quarter. Peak consideration for apartments of most sizes, however, was seen in the second quarter.

Other median price gains included 8% for one-bedrooms to $106,500, 4% for two-bedroom and four-bedroom and larger apartments to $157,143 and $344,444 respectively, and 3% for three-bedroom units to $242,500.

East Side prewar co-ops registered a median sales price increase of $60,000 over the prior year's mark, an eight percent gain, while that index for Postwar units there eased six percent to $435,000 from 2000's price of $462,000.

The West Side prewar co-op media price per room hardly changed, rising to $530,000 from $525,000. Postwar co-ops in that part of town appreciated more with a 5% median sales price per room increase to $395,000 from 2000's figure of $375,000.

Downtown transfers fell 15% to 422 from 496 in 2000, but fourth quarter sales volume matched the prior year's mark, another indication that a scarcity of available units and the recession were more influential on the market than the terrorists' attacks. Although September's tragedy certainly slowed sales south of 42nd Street, the median co-op price in that part of town was up ten percent from the previous year to $330,000.

While loft sales volume dipped from 2000, the median price per SF for such apartments increased to $518 for units north of Houston Street and $605 for those south of that boundary.

REBNY's cooperative sales reports are based on the findings of the board's participating residential brokerages. Cooperative apartment transfers are not a matter of public record. The participating brokerages receive a full copy of these reports. A summary of the survey can be obtained from REBNY's Research Department.