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Report: NYC condo prices continue to stabilize in '92.

Prices for residential condominiums in Manhattan declined a marginal 4.01 percentage points overall in 1991, as measured by the "Heller Equities Condominium Index: Manhattan." The winter 1992 issue of the "Heller Equities Condominium Report: Manhattan" notes that while the neighborhood from Lexington to York Avenues experienced the sharpest decline in prices, with a 4.94 percent decrease for 1991, the "Gold Coast areas of Fifth, Madison, Park, Central Park West and Central Park South demonstrated the highest price increase of 10.01 percent. The neighborhood west of Central Park West to the Hudson River enjoyed an 8.03 percent price increase. (All areas are bound north by 86th Street and south by 50th Street.)

"The report indicates that the New York residential condominium market is continuing a stabilizing course," said Jack Heller of Heller Equities Incorporated, the firm that commissions the index from Professor Susan M. Wachter of the Wharton Real Estate Center, University of Pennsylvania. "In terms of variances among neighborhoods, condominium residences located in historically prestigious neighborhoods seem to be outpacing the market as a whole."

In contrast to reports of a sluggish residential market, the number of condominium units sold in 1991 was slightly higher than 1990's numbers. "The Heller Equities Condominium Report: Manhattan" reports 2,939 condominium sales in 1991, up 1.3 percent from 2,902 in 1990. While selling was active, permits issued for new residential units were at a seven-year low, down 77 percent, to 545 in 1991 from 2,398 in 1990.

As previous reports have indicated, demand for residential condominiums in Manhattan continues to outpace supply, and the supply of existing condominiums continues to be absorbed. If this trend continues Manhattan may experience a shortage of residential units in the near future.

"We expect this activity will result in a significant increase in condominium prices in 1992," said Heller.

The year-end report also shows that national mortgage rates continued to fall to 8.5 percent in December 1991, down from 9.58 percent one year earlier.
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Copyright 1992, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Real Estate Weekly
Date:Mar 18, 1992
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