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Residential condos up 1.1% in 3rd quarter.

Residential condos up 1.1% in 3rd quarter

Prices for residential condominiums in Manhattan were up 1.1 percentage points overall in the third quarter of 1991, as measured by the Heller Equities Condominium Price Index: Manhattan. This represents an upturn in the market, which was down 4.6 percent in the second quarter. The index rose to 372 basis points this quarter, which is only eight basis points from its all time high since 1978.

The fall issue of the Heller Equities Condominium Report: Manhattan reports that condominiums located in the "Gold Coast" neighborhoods, namely Fifth, Madison, Park, Central Park West and Central Park South,* experienced a 2.9 percent increase in the third quarter, for a total appreciation of 5.4 percent since the beginning of the year. Condominiums on the Upper East Side, from Lexington to York,* experienced a price increase of 4.9 percent, indicating a healthy correction from last quarter's 13 percent decline. Condominiums located on the Upper West Side, west of Central Park West,* fell 4 percent, compared to last quarter's 11.2 percent price increase.

"These figures clearly indicate that the residential condominium market in Manhattan continues its course and travels along a steady continuum," 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. "The "Gold Coast" homes in the prestigious neighborhoods similarly continue their historically dependable course of value appreciation," added Heller.

* All areas are bound north by 86th Street and south by 50th Street

A new graph was introduced to the report this quarter. This graph compares the Heller Equities Condominium Price Index: Manhattan to the national Consumer Price Index (CPI) and indicates that both indexes showed modest increases this quarter, with the Heller Index (1.1 percent) outpacing the CPI (0.8 percent).

Sales of condominiums in Manhattan were up for the third quarter in a row, while permits to build new residential units continued their 1991 downward slide. The Heller Equities Condominium Report: Manhattan reports 833 sales this quarter, up 21 percent from second quarter's 728. Permits for new units were down 33 percent, to 80 in the third quarter from 119 in the second quarter. "Demand continues to outpace supply," said Heller.

The Heller Report also shows that prices continued to increase while national mortgage rates continued to fall. "The decline in mortgage rates continues to help fuel condominium sales in Manhattan," noted Heller. "This is a good sign."

The fourth quarter Heller Equities Condominium Report: Manhattan and Year in Review will be published in late January.
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:prices
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Dec 18, 1991
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