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Fewer apartments bring higher sale prices.

With a less than normal supply of apartments for sale, overall purchase prices of luxury Manhattan co-ops and condominiums rose in May, with the average cost of an apartment increasing to $76,251 a room. A year ago, the Corcoran Price Index was $76,850 per room. So reports the June 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 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 downturn in asking prices by unit size for most of the 8,733 luxury apartments it tracked citywide last month. For example, average asking prices for two bedroom apartments (five to six rooms) dropped by 1.2 percent to $675,000 while three-bedroom units fell by .9 percent to $1,042,000 and four-plus bedroom prices fell by .4 percent to $2,080,000. Smaller two-bedroom units (4.5 rooms) rose by .5 percent to $416,000. Overall, asking prices for all units were down by .4 percent for an average price of $521,737.

"There seems to be less inventory than usual these days and that's making it harder for buyers to negotiate down," asserted Barbara Corcoran, president of the Corcoran Group, who believes many sellers are waiting for the fall before putting their apartments on the market in the hopes of getting higher prices. Among the findings reported in the latest Corcoran Market Update were: * Buyers were able to negotiate asking prices down by only 18 percent during May compared to 20.5 percent during the same period in 1991 * The average listing time for apartment sales during the month was 23 weeks, compared to 28 weeks a year ago * 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 $239,945 compared to $205,595 on Park Avenue and $77,158 on West End Avenue *The average luxury co-op/condo buyer last month was 35 years old, had an average income of $140,000 and made a purchase of $265,500.
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Publication:Real Estate Weekly
Date:Jun 24, 1992
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