Manhattan Apartments

The first quarter figures are in the Manhattan real estate market, and old records have been broken. Although the numbers seem surprisingly positive, the overall picture is more complex.

Average house prices rose by almost one third, or 33.5% on last year's figures. All told, the average price of a Manhattan apartment rose to a staggering 1.7 million.

There are several warning signs for the market in New York apartment, however. There is a growing disparity between prices for Manhattan and the rest of the market town of real estate. More importantly, while prices remained high, sales have slowed significantly.

In addition, the record average price of Manhattan comes largely from a number of new luxury condominiums that went on the market last month.

In all, 71 apartments were sold on the island for more than $ 10 million in the first quarter - a number far higher than the average for Manhattan.

However, what is most troubling about the figures is the moment of this. While the first quarter was surprisingly successful in terms of average selling prices, inventory was starting to rise significantly before the Bear Stearns episode, which probably put a significant cooling of the immediate demand for luxury New York City apartments .

Indeed, the very presence of the finding of average prices in 1Q may eventually cause some concern when the numbers are released 2Q.

An important problem in analyzing the potential impact on the market in New York apartment evaporation of Bear Stearns is located in different empirical data sets of major Manhattan real estate brokers. According to Prudential Douglas Elliman, the number of sales decreased by 34% during the first quarter. Two other real estate companies were down low single digit percentage points.

If numbers are correct Prudential Douglas Elliman, so that could mean trouble for the market: a high rate of sales decline is then combined with a major disaster, such as the closure of one of the most important city of private employers. Considering that less terrible if assessments prove true, then it seems likely that the recession will not lead to a full pension price range.

In total, the number 1Q are more positive than many predicted. However, unmistakable signs of a slowing market can be seen in three major reports published to date. How ' Manhattan apartment market reacts to Bear Stearns, will be the next major fixed-term future of the market close.