Lower-priced Manhattan condo sales dive 30%

New York /
Dec.December 28, 2011 09:14 AM

For months, real estate insiders have championed the strength of Manhattan’s high-end condominium market, but according to a Wall Street Journal analysis of fourth-quarter city deeds, that hasn’t compensated for dismal results on the lower end of the island’s condo spectrum.

While the fourth-quarter is historically a slower sales season, volume is down 12 percent this year from the prior-year fourth quarter. That decline was keyed by plummeting sales figures for condos, as co-op sales figures were short just 1.3 percent from last year’s fourth-quarter.

Overall, closed condo sales sunk 24 percent from the final three months of 2010, and more than 30 percent for sales worth less than $1 million. Proving the relative strength of the high-end market, deals for condos worth more than $4 million remained less than 7 percent below last year’s figures. Further, while median sales prices fell 8 percent from the previous quarter and 6.6 percent year-over-year, median condo prices actually jumped — 11.7 percent quarter-over-quarter and 13 percent since the end of last year — because of the steep drop in lower-priced sales.

Real estate analysts attributed the decline to a lack of confidence resulting from the summer’s gyrating economy and the debt troubles in Europe. The cut in Federal Housing Administration’s maximum loan amount, which was eventually reversed, also scared off buyers. Now, with the dollar strengthening, the foreign buyers that have fueled the upper end of the market may also cut back. [WSJ]


Related Articles

arrow_forward_ios
Corcoran’s Julian Johnston, Luxe Living Realty’s Dora Puig, One Sotheby’s’ Jeff Miller, Douglas Elliman’s Dina Goldentayer and Douglas Elliman’s Oren Alexander
WATCH: Top luxury brokers go head to head at TRD’s Miami event
WATCH: Top luxury brokers go head to head at TRD’s Miami event
432 Park pad trades for $26M, supertall’s priciest deal since 2019
432 Park pad trades for $26M, supertall’s priciest deal since 2019
432 Park pad trades for $26M, supertall’s priciest deal since 2019
312 West 43rd Street, National Real Estate Advisors CEO Jeffrey Kanne and Taconic Partners' Paul Pariser and Charles Bendit (Google Maps, National Real Estate Advisors, Taconic Partners)
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
Taconic JV lands $204M loan for Hell’s Kitchen luxury rental
25 Park Avenue in Larchmont (WilliamPitt)
Estate famed for turtle soup has new distinction: $11M sale price
Estate famed for turtle soup has new distinction: $11M sale price
9 East 68th Street, 22 East 67th Street (elliman.com, streeteasy.com)
Manhattan luxury market breaks single-week record for contract signings
Manhattan luxury market breaks single-week record for contract signings
The report shows the small uptick among single-family homes, townhomes, condominiums and co-ops. (iStock)
After rebound, existing home sales growth slows in October
After rebound, existing home sales growth slows in October
Chairman Emeritus and Co-Founder Keith A. Tucker and 1904 Sendero Verde, Edwards, CO (Century Bridge, Vail Real Estate)
Investor asks $30M for 145-acre estate near Vail
Investor asks $30M for 145-acre estate near Vail
U.S. Senator Dianne Feinstein and the Lake Tahoe property (Getty, Realtor.com via Katrine Watson)
Dianne Feinstein finds buyer for Lake Tahoe compound after $10M price chop
Dianne Feinstein finds buyer for Lake Tahoe compound after $10M price chop
arrow_forward_ios

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

Loading...