City home prices shoot up 8 percent: REBNY

October 11, 2011 10:31AM

While the wave of residential market reports issued by brokerages earlier this month found Manhattan home prices to be stable, the Real Estate Board of New York found prices to be increasing.

The average Manhattan home price in the third quarter increased 5 percent compared to the prior year quarter to $1.39 million, according to the REBNY report released today. Citywide, REBNY found home prices increased 8 percent to $780,000. Chelsea/Flatiron saw the biggest price increase over the last 12 months, as homes averaged $2.08 million, 16 percent more than they cost in the third quarter of 2010.

Curiously, whereas the brokerages’ reports indicated a substantial hike in year-over-year sales volume, REBNY found an 11 percent decrease, which it attributed to the inflated volume from last year’s extension of the home buyer tax credit closing deadline. According to REBNY the total dollar value of residential transactions in the third quarter was $8.04 billion, down 3.89 percent from last year.

The Upper East and Upper West sides accounted for 13.3 percent of all sales, with 1,370 sales. Flushing led all outer-borough neighborhoods in residential sales. with 338, followed by Rego Park/Kew Gardens/Forest Hills with 303 and Williamsburg with 235 sales.

Year over year, Brooklyn home prices gained 8 percent to $589,000, and Queens and the Bronx each gained about 1 percent in home prices to $399,000 and $350,000, respectively. — Adam Fusfeld