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NYC co-ops/condos hit not so hard in '91.

NYC co-ops/condos hit not so hard in |91

In one of the strongest signals to date that the worst may well be over in the Manhattan residential marketplace, prices of luxury New York co-ops and condominiums fell by only 3.4 percent last year, a far cry from the 17.3 percent drop in 1990, the biggest one-year plunge in the city's history.

Indications that Manhattan - the first market to experience the real estate shake out back in the Spring of 1989 - may now be the first area showing signs of recovery, highlighted the 1991 Year-End edition of The Corcoran Report, a comprehensive 12-month study analyzing conditions and trends in the New York luxury housing marketplace. The report is prepared by The Corcoran Group, a Manhattan-based real estate firm specializing in cooperative and condominium sales.

Unlike its two preceding studies, the 1991 report showed prices for Manhattan's largest apartments (8 to 14 rooms) appreciating from 3.8 percent to 5.6 percent along sections of Fifth, Park and East End Avenues, while values also climbed by 2.9 percent to 3.3 percent for one-bedroom apartments in the Gramercy, Chelsea and Village districts of the borough.

Citywide, prices for one and three-plus bedroom units were down by only .5 percent for the year while two and three-bedroom apartments depreciated by 6 percent and 4.9 percent respectively.

"We're definitely seeing the start of a turnaround," asserted Barbara Corcoran, president of the Corcoran Group, who cited four key factors in the revival - a tremendous shortage today of larger listings, especially on the Upper East Side; a pent-up demand for apartments; low prices and even lower interest rates.

"The market is following its customary pattern of recovery," added Corcoran, "with the largest and smallest apartments leading the way. Choice big residences are very hard to find right now and the same phenomenon is slowly starting to emerge in the one-bedroom sector."

Using past cyclical patterns as a reference, Corcoran noted that New York City has a history of being the pacesetter for nationwide real estate trends - the first to evidence downturns as well as upswings. "And it may well be happening again," she declared.

Other findings contained in the Corcoran Year-End Report revealed that: *For the second time since the inception of the report in 1981, buyers actually spent less (-1.1 percent) than they had budgeted for their apartment purchase. In 1990, they spent 4.5 percent less *The downtown loft market also suffered smaller losses last year than in 1990, with larger units faring slightly better than smaller ones. Overall, loft prices were down by an average of 2.8 percent compared to 13 percent the previous year *New York co-op and condominium purchasers were able to successfully negotiate 20.5 percent off the original asking price of their apartments last year compared to 23.5 percent in 1990, while 5.8 percent of all purchases sold for the full asking price compared to 3.3 percent the previous year *The average initial offer made by a buyer in 1991 was 26.3 percent below the asking price compared to 29.5 percent a year earlier *The average buyer actively looked for 3.9 months before purchasing and personally viewed an average of 27 apartments last year. In 1990, the average buyer looked for 5.3 months and saw 24 apartments *The average listing period for an apartment in 1991 was 26 weeks compared to 30 weeks during the previous year. *Last year, the average buyer had an annual income of $298,955 and a net worth of $1.77 million. In 1990, the average purchaser made $285,216 yearly and had a net worth of $1.86 million.

According to Corcoran, prices for similar sized luxury apartments still vary dramatically throughout Manhattan.

For example, the cost of a two-bedroom (4 to 5.5 rooms) apartment along fashionable Fifth Avenue currently averages $970,000 while the same size residence along Riverside Drive is commanding an average price of $290,000. Prices for two-bedroom apartments along Central Park West are presently averaging $405,000.

A complete price breakdown for all of Manhattan's leading Uptown and Downtown apartment districts highlights the 1991 Year End Corcoran Report, which is available free to all interested parties by writing or contacting The Corcoran Group at 645 Madison Avenue in Manhattan.
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Title Annotation:prices drop only 3.4%
Publication:Real Estate Weekly
Date:Jan 22, 1992
Words:726
Previous Article:Recovering possession after a tenant dies.
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