Manhattan real estate prices up 14%

nyc_building.ju.top.jpgHome prices are gaining again on the island of Manhattan. By Les Christie, staff writer


NEW YORK (CNNMoney,.com) -- Home prices in Manhattan, the most expensive large housing market in the nation, appear to be stabalizing -- and maybe even growing.

Condo and coop prices rose between 7.5% and 14% in the last quarter, compared to the same period a year ago, according to a host of markets reports released Friday by big New York brokerage firms.

The median price for an apartment sold hit a whopping $890,000, according to broker Brown Harris Stevens and the Halstead Group. For The Corcoran Group, the price was $900,000; Prudential Douglas Elliman came in at $914,000.

This is the third consecutive quarter of price gains, a signal that Manhattan real estate is stabalizing. Plus, the supply of homes for sale has grown much tighter, down about 25% since inventory hit a peak in March 2009.

"It's now a very normal, back-to-basics market in New York," said Pam Liebman, Corcoran's CEO.

Homes sold more quickly than they had been, according to Jonathan Miller of Miller Samuel, the appraisal firm that calculates prices for Prudential. The average home sold during the quarter was on the market just 127 days, down from 167 during the third quarter of 2009.

But all these numbers may make the market appear a little stronger than it actually is, according to Miller.

"Prices aren't really rising," he said. "The indicators are rising but only because we've shifted to a more normal mix of sales."

And the local economy has been making headway: One of every 10 private sector jobs created this year has been in New York City.

The stock market, always a critical factor in the fiscal health and consumer confidence of New Yorkers, climbed more than 10% during the quarter.

All that has helped the housing market return to the "old normal," said Miller, without really taking off. "The word recovery isn't really appropriate yet. Prices are not jumping."

One drag on the market is the difficulty buyers face obtaining mortgages. Interest rates may be low, but underwriting barriers are high. Lenders ask for substantial down payments, high credit scores and lots of documentation.

"Credit is still the tightest I've seen in my lifetime," said Miller.

He said the market may go sideways for a while. "It may get a little worse before it gets better," he said.

Right now though, the market is primed for Goldilocks buyers -- neither too cold nor too hot.

"We're in a good, healthy place," said Liebman. "Buyers are acting like they did in the past, buying to fulfill their needs, not running with the herd." To top of page


Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.01%4.03%
15 yr fixed3.12%2.97%
5/1 ARM3.11%2.99%
30 yr refi4.04%4.09%
15 yr refi3.15%3.05%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in: New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
Index Last Change % Change
Dow 17,804.80 26.65 0.15%
Nasdaq 4,765.38 16.98 0.36%
S&P 500 2,070.65 9.42 0.46%
Treasuries 2.18 -0.03 -1.27%
Data as of 7:51am ET
Company Price Change % Change
Bank of America Corp... 17.62 0.09 0.51%
Apple Inc 111.78 -0.87 -0.77%
General Electric Co 25.62 0.48 1.91%
Intel Corp 36.37 -0.65 -1.76%
Microsoft Corp 47.66 0.14 0.29%
Data as of Dec 19

Sections

New York Magazine reporter Jessica Pressler, who has been caught up in controversy this past week, will not be moving on to a new job at Bloomberg News. More

Investors beware: These 5 global crises are likely to rattle the stock market and world economy. More

Forums in dark corners of the web sell the kinds of hacks that befell Sony. More

Unilever sued Hampton Creek over its egg-free mayonnaise spread Just Mayo. But the company behind Best Foods and Hellman's mayonnaise has now dropped the lawsuit. More

The income of the top 1% jumped significantly in 2012, far outpacing inflation. Not only did this group make a larger share of the country's income, their share of total taxes also jumped from 35% to 38%. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.