Manhattan prices increase over decade ending in 2008

New York /
Mar.March 02, 2009 11:14 PM

While 2008 saw the collapse of Wall Street, Manhattan prices were still in better shape in 2008 than a decade earlier, according to three 10-year market reports released by Prudential Douglas Elliman today.

The average sales price of co-op and condo units surged 207.2 percent between 1999 and 2008 to $1.59 million, and the number of sales increased to 10,299 from 9,522, according to the overall Manhattan report.

Townhouses, the subject of the second report, saw a 192.1 percent rise in average sales price to $7.37 million over the prior decade while sales increased 6.3 percent to 151 in 2008.

“We had a steady rise in prices over the last five years,” said Jonathan Miller, president of real estate appraisal firm Miller Samuel, which prepared the reports for Elliman.

Over the decade, in the Hamptons and the North Fork, which are covered
in the third report, the average sales price jumped 256 percent to
$1.49 million 2008, while sales volume plummeted 54.4 percent to 1,659
sales.

Compared to 2007 – when there were the greatest number of sales – the 2008 sales volume in Manhattan was down, but prices increased, according to the Manhattan market report, which actually provides a recap of the past year and was designed to be used to determine price and sales trends for the prior decade. In 2008, the number of sales dropped from the 13,430-unit record in 2007.

The most significant lesson of the 10-year report, said Dottie Herman, Elliman’s CEO, is that real estate is cyclical.

“A 10-year report has nothing to do with 2007 or 2008 or comparing those two years,” Herman said. “If you look, you’re going to see that the prices dipped in 2001…and [then] the prices were going up in the normal increment.”

Today’s market troubles are “really more of a credit problem for New York City than a housing problem,” she added. “If tomorrow somebody came out and said, ‘we’re back to the subprime mortgages,’ I guarantee you prices would start to rise again.”


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
909 Third Avenue and Vornado's Steven Roth (Google Maps, VNO)
601W sells dirt under Vornado’s 909 Third Ave for $192M
601W sells dirt under Vornado’s 909 Third Ave for $192M
9 Prospect Park West and 2 Northside Piers in Williamsburg (Photos via Google Maps and 2 Northside Piers/Facebook)
A Park Slope co-op was one of the priciest deals inked last week
A Park Slope co-op was one of the priciest deals inked last week
The New Jersey campus (Getty, JLL)
H.I.G., Lincoln Equities land $76M loan for NJ life sciences campus
H.I.G., Lincoln Equities land $76M loan for NJ life sciences campus
Dianne Morales
WATCH: Dianne Morales on what progressives want from real estate
WATCH: Dianne Morales on what progressives want from real estate
42 Old Montauk Highway, Montauk
The unsellables: Even in a hot market, these Hamptons homes don’t move
The unsellables: Even in a hot market, these Hamptons homes don’t move
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...