Consumer confidence is clear with a 125% increase in sales since the market’s lowest point in the First Quarter of 2009. Manhattan’s reputation has solidified as a safe haven for investment amidst global economic uncertainty. Low mortgage rates, combined with record high rental rates are both contributing to buyer and investor interest.
Market-wide inventory is at its lowest point in over seven years, with 7,041 available listings. Strong demand diminished supply faster than it could be replenished through resale turnover and new development. As a result, inventory declined 11% from Second Quarter 2012 and 22% from Third Quarter 2011. Co-op and condo inventory are declining at similar rates, each down over 20% from last year.
The combination of strong demand and depleted inventory is pushing prices higher. Resale co- op overall median price is down year-over-year as more small residences traded this quarter, but each individual bedroom category increased. Resale condo median price increased 1% versus last year, and, most impressively, new development median price increased 18%.
The market-wide median price at $850,000 — unchanged from the second quarter of 2012, or the third quarter of 2011.
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