The first quarter report is in.Â According to Greg Heym, Chief Economist at Halstead Property, NYC's largest privately owned real estate firm, Manhattan apartment prices averaged $1,483,591 in the first quarter of 2012, 9% more than a year ago.Â A big reason for this increase was a 42% jump in the number of closings over $10 million, including a record $88 million sale.Â The median price, which measures the middle of the market, rose 4% compared to the first quarter of 2011 to $821,500.Â The number of sales rose slightly, with reported closings 2% higher than a year ago.
All sizes of condos saw an increase in average price from 2011â€™s first quarter, with larger apartments posting the biggest gains.Â The average price for all condos of $1,889,560 was 8% higher than a year ago, and was the highest average condo price in three years.Â New developments accounted for 41% of all condo closings, up from 35% in the first quarter of 2011.
Co-op prices averaged $1,181,715 in the first quarter, 10% higher than a year ago.Â This gain was fueled by three-bedroom and larger co-ops, whose average price jumped 17% from the first quarter of 2011.Â One-bedrooms were the only size category of co-ops to post a lower average price over the past year.
Recent revisions to New York City employment data show that the city added significantly more jobs than originally thought in 2011.Â Overall, 54,000 jobs were added in 2011 (up from the original estimate of 36,600), 4,800 of which were in the high-paying finance sector.Â The New York State Comptroller announced that Wall Street firms paid out $19.7 billion in cash bonuses for 2011, down from the prior year but much better than expected.Â
These factors, combined with the improvement in hiring across the U.S. over the past few months, and a surging stock market, has strengthened demand for apartments in Manhattan.Â This, combined with a stable level of inventory, bodes very well for the Manhattan apartment market over the next several months.
With interest rates still very low, this is a fabulous time to buy.Â Low interest rates, an uptrending market, what could be better?Â What a great time for a starter purchase, trading up, downsizing, or making an investment!
The full version of the report is available on the Halstead website atÂ the link below: