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Second-quarter luxury condo, co-op market lifts Manhattan prices.

Luxury co-op and condominium markets increased Manhattan prices during the second quarter, according to The Prudential Douglas Elliman Report.

Luxury co-op and condominium sales and median sale prices increased from the first quarter of this year and second quarter of 2010. The luxury market median sales price-the upper 10 percent of all co-op and condominium sales-increased 11.2 percent to $4-55 million, up from more than $4,093 million during the second quarter of 2010.

The average sales price divides all sales prices by properties sold while the median sales price is the sales price in the middle of the list of all properties sold. The lower limit of the top 10 percent of all luxury condominium and co-op sales in the second quarter was $2.95 million.

"The luxury market, which represents the highest 10 percent of all sales, showed price gains over last year as Wall Street and foreign buyers continue to drive demand," said Jonathan Miller, chief executive officer of Miller Samuel Inc., New York, and author of the report for Prudential Douglas Elliman, New York.

The second-quarter average sales price for co-ops and condominiums increased to more than $1,455 million, up from more than $1,331 million in the first quarter of this year and from more than $1,432 million during the second quarter of 2010-a 9.3 percent and 1.6 percent increase, respectively. The median sales price for all co-ops and condominiums increased 8.7 percent to $850,000 from $782,071 in the first quarter of this year, but it also fell 5.5 percent from $899,000 during the second quarter of 2010.

While the second-quarter co-op median sales price was $700,000-up 40 basis points from $697,501 in the second quarter of 2010-the condominium median sales price fell 2.7 percent to $1.07 million from $1.1 million in the same quarter last year.

Co-op and condominium sales increased 10.7 percent to 2,650 sales from 2,394 sales during the first quarter of this year, but sales dropped 3.8 percent from 2,756 sales during the second quarter of 2010.

Price per square foot jumped 4.2 percent to $1,068 from $1,025 during the first quarter of this year and increased 1.6 percent from the second quarter of last year.

The report said active listings slipped during the past year, but overall housing-price trends continue to reflect stabilized conditions. "Relative to other housing markets across the country, Manhattan continues to be one of the best-performing markets to date. While our regional economy is showing a slow pace of improvement, we anticipate the Manhattan housing market to follow the same trend for the remainder of 2011," said Dottie Herman, president and chief executive officer of Prudential Douglas Elliman.

Co-op market sales increased 13.5 percent to 1,366 units from 1,203 units in the second quarter of last year, but condominium sales dropped 17.3 percent to 1,284 units, from 1,553 units during the second quarter of 2010.

The second-quarter median sales price in the co-op and condominium loft market increased 6.7 percent to $1,675 million from $1.57 million during the second quarter of last year, but loft market sales fell 21.4 percent to 206 units, from 262 units in the second quarter of 2010.

New development accounted for 21.8 percent of all sales in the second quarter as sales increased 7.2 percent to 577 units, from 622 units during the same period last year. Active inventory for new development declined 21.3 percent to 1,626 units from 2,067 units during the second quarter of 2010.
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Title Annotation:Commercial
Comment:Second-quarter luxury condo, co-op market lifts Manhattan prices.(Commercial)
Publication:Mortgage Banking
Geographic Code:1USA
Date:Aug 1, 2011
Words:615
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