Manhattan Real Estate Sees Record Sales in 4Q; Average Price $1.4M

Manhattan Real Estate Sees Record Sales in 4Q; Average Price $1.4MManhattan, already mired in a strong housing market compared to just about anywhere, saw a record 2,598 sales in the fourth quarter of 2012, as the “fiscal cliff” changes in tax laws loomed and the economic recovery persisted.
That’s the highest sales figure for the most sought-after New York City borough in at least 25 years.
The number of listings fell 34 percent to a 12-year low of 4,749. The resulting absorption rate fell to 5.5 months, the second fastest rate since 2000, according to Douglas Elliman Real Estate.
Median sales prices declined 2 percent to $837,500 and average sales price edged 1.1 percent higher to $1,461,473 compared to the prior year.
“The market appears poised for some level of price appreciation in 2013, considering historically low mortgage rates that drive sales, coupled with a chronic shortage of active listings, which are at their lowest levels in more than 12 years,” reads the EllimanReport for the fourth quarter.
Most of the increase in sales came from the co-op markets, which stayed at mostly a 60 percent share for 2012, up from 49.5 percent in the fourth quarter of 2011.
“Listing inventory fell 34.2 percent to 4,749, the lowest inventory total of the 12 years we have been capturing this metric,” reads the EllimanReport. “The chronic lack of inventory has resulted in a faster market pace.”

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