The Manhattan real estate market is set to hit new highs in 2014, according to a new report.
CityRealty projects the average sale price for condos and co-ops will hit $1.8 million this year, outstripping the previous record of $1.6 million set in 2008. Last year, the average sale price was $1.5 million, the New York Times reported.
The report says that the spike in the average price can be attributed to soaring sales of apartments over $10 million. CityRealty expects 220 deals over that mark will be completed this year, for a total sales volume of $3.8 billion. Last year, only 123 apartments over $10 million were sold, worth $1.8 billion.
Sales volume for all residential sales in Manhattan is expected to hit $22 billion. That’s up slightly from $21 billion in 2013. The number of units sold will be down from last year, however, dropping from 13,900 in 2013 to 12,600 in 2014.
Price increases may be limited in coming years by large numbers of luxury units hitting the market , CityRealty’s research director Gabby Warshawer told the newspaper. About 700 luxury apartments priced at or above $7,000 per square foot are expected to hit the market in the next five years.
CityRealty’s full report is here.