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'Election jitters' hit co-op/condo prices.

With Election Day apprehension growing, overall purchase prices of luxury Manhattan co-ops and condominiums dropped in September by 1.2 percent, with the average cost of an apartment falling to $74,889 a room. A year ago, the Corcoran Price Index was $77,973 per room.

So reports the October issue of The Corcoran Market Update, a monthly survey highlighting fast breaking trends in the New York co-op and condominium marketplace prepared by The Corcoran Group, a leading Manhattan-based real estate firm specializing in luxury residential sales.

Based on data from listings and completed purchases that took place during the preceding 30-day period, The Corcoran Market Update reported a mix of asking prices by unit size for most of the 9,458 luxury apartments it tracked citywide last month.

For example, average asking prices for one-bedroom apartments dropped by .8 percent to $238,000 while studio units fell by .7 percent to $128,000.

Three bedroom prices rose by .6 percent to $1,04 million. Overall, asking prices for all units were down by .6 percent for an average price of $507,788.

"Buyers were definitely showing more of a wait-and-see attitude as the summer progressed," asserted Barbara Corcoran, president of the Corcoran Group, who feels that the current uncertainty in the marketplace will be reduced significantly after Election Day.

Among the findings reported in the latest Corcoran Market Update were: * Buyers were able to negotiate asking prices down by 18.6 percent during September compared to 18.4 percent during the same period in 1991 * The average listing time for apartment sales during the month was 28 weeks, compared to 25 weeks last year * Average asking prices continued to vary dramatically by location. The price per room of a Fifth Avenue luxury residence (above 60th Street), for example, was $230,166 compared to $197,112 on Park Avenue and $73,857 on West End Avenue * The average luxury co-op/condo buyer last month was 26 years old, had an average income of $200,000 and made a purchase of $285,000. dential financing, which surveys and analyzes New York mortgage rates and borrower preferences on a monthly basis.

Interest rates for New York luxury co-ops and condominiums continued their downward trend in September.

So reports the Manhattan Mortgage Company, a leading specialist in co-op, condominium and private home resi-

According to its September report, which is based on data from 10 major lending institutions, all serving the New York residential marketplace, rates fell across-the-board for the three leading fixed-rate mortgages and the three most popular adjustable rate mortgages in September.

In the fixed-rate category, 15-year fixed-rate mortgages fell from 7.875 percent to 7.625 percent, 30-year fixed-rate mortgages dropped from 8.125 percent to 8 percent, and seven-year fixed-rate mortgages plummeted from to 7.5 percent to 7.25 percent.

In the adjustable mortgage category, one-year adjustables fell from 6.125 percent to 5.75, three-year adjustables dropped from 7.125 to 6.875, and five-year adjustables dipped from 7.25 percent to 7 percent.

According to Melissa Cohn, partner of the Manhattan Mortgage Company, September's across-the-board declines and the volatility in interest rates are the result of depressing indicators that show no progress toward an economic rebound, expectations of a large rate cut, the impending election, and government efforts to stimulate the economy.
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Title Annotation:purchase prices of New York, New York apartment cooperatives and condominiums decrease with apprehension of presidential elections 1992
Publication:Real Estate Weekly
Date:Oct 28, 1992
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