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December co-op/condo prices level off.

Experiencing its traditional year-end sales slowdown, purchase prices of luxury Manhattan co-ops and condominiums flattened in December, with the average cost of an apartment leveling off at $75,534 a room. A year ago, the Corcoran Price Index was $76,508 per room.

So reports the January issue of The Corcoran Market Update, a monthly survey highlighting fiends 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 that 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 the 6,851 luxury apartments it tracked citywide last month. for two bedroom apartments (4.5 rooms) dropped by .7 percent to $411,000 while larger two bedroom units (5 to 6 rooms) increased by 2.l percent to $694,000. Overall, asking prices for all units were up by .4 percent for an average price of $527,816.

Among the findings reported in the latest Corcoran Market Update were:

* Buyers were able to negotiate asking prices down by 18.8 percent during December compared to 18.7 percent during the same period in 1991

* The average listing time for apartment sales during the month was 27 weeks compared to 29 weeks last year

* Average asking prices continued to vary dramatically by of a Fifth Avenue luxury residence (above 60th Street), for example, was $247,507 compared to $199,002 on Park Avenue and $79,535 on West End Avenue

* The average luxury co-op/condo buyer last month was 40 years old, had an average income of $300,000 and made a purchase of $565,000

Mortgage Rates

After rising in November, interest rates for New York luxury co-ops and condominiums fell a]most across-theboard in December. So reports The Manhattan Mortgage Company, a specialist in co-op, condominium and private home residential financing, which surveys and analyzes New York mortgage rates and borrower preferences on a monthly basis.

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

In the fixed-rate category, 15-year fixed-rate mortgages dropped from 8.25 percent to 8 percent, 30-year fixed-rate mortgages fell from 8.6 percent to 8.5 percent, and seven-year fixed-rate mortgages dipped from 7.75 percent to 7.625 percent.

For example, average asking prices

In the adjustable mortgage category, one-year adjustables dropped from 5.6 percent to 5.5 percent and three-year adjustables fell from 7.25 percent to 6.88 percent. Five-year adjustables rose slightly from 7.375 percent to 7.5 percent.

According to Ellen Feldschreiber, partner of the Manhattan Mortgage Company, the drops in December's rates can be attributed a higher comfort level about the impending Clinton presidency, his tactics for dealing with the economy, and the success of his recent economic summit. Other positive indicators that had an impact on rates included optimism on Wall Street after national reports that the recession may have ended, and the fact that inflation is being kept at minimal levels.

In terms of loan preferences, The Manhattan Mortgage Company survey reported that 33 percent of coop/condominium borrowers chose 30year, fixed-rate mortgages in November, while one-year adjustable-rate mortgages accounted for 32 percent of the marketplace.
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Title Annotation:sales of cooperative apartment buildings and condominiums slows during December 1992
Publication:Real Estate Weekly
Date:Jan 27, 1993
Previous Article:Publicists join forces.
Next Article:Renewals and expansions.

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