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First Quarter 2010 Manhattan Market Report

The First Quarter Corcoran Report

Corcoran Group Real estate in collabaration with Property Shark released it's Manhattan residential real estate market report utilizing market-wide data based on deals that closed in the First Quarter of 2010 (January 1 through March 31) and compares it to closings that took place last quarter and during the same quarter one year ago.

Closings usually occur eight to twelve weeks after a contract is signed (in new development, the wait can be as long as two years); for that reason, the sales activity charted here trails actual market conditions.

The First Quarter 2010 saw a healthy return of buyers to the market. Twenty-three percent more properties sold in the First Quarter of 2010 than in the same quarter one year ago.

Favorable market conditions such as price stabilization, low mortgage rates, renewed confidence in the economy and the extension and expansion of the home buyer tax credit made this an ideal time to purchase property.

Buyers have begun to realize that, from here on out, prices will more likely go up than down. As a result of buyers’ increased activity, the price reductions that characterized the post-Lehman
market (from September 2008 through the Third Quarter of 2009) ended in the Fourth Quarter of 2009 and stabilized in the First Quarter of 2010.

Market-wide, the average sale price and the average price per square foot of an apartment were up 2 percent versus last quarter; for resales only, these metrics were up 3 percent.

Manhattan Market Trends - Market Wide.

Sales increased strongly versus a year ago. While prices are generally lower than First Quarter 2009, market-wide median prices are up versus Fourth Quarter 2009.

Uptown new development median price increased 12% from Fourth Quarter 2009 while average price per square foot inched up slightly by 1%. Median price for one-bedroom residences increased 30%

Buyers have recognized that now is a great time to purchase property. As of this writing, the number of market-wide closed sales in First Quarter 2010 is 23% higher than First Quarter 2009.

Once all First Quarter 2010 sales are tallied (due to the lag time between a closing and its recording not all sales are able to be included in this report), we estimate that the number of sales could be as much as 70% higher than a year ago.

Resale activity was strongly improved with increased activity in both co-ops and condominiums and in all neighborhoods compared to a year ago.

Manhattan Market Trends Coops and Condos

One aspect of the current recession is how quickly price corrections occurred. Over the course of only a year, median co-op sales price declined 14% from peak to trough (Third Quarter 2008 to Third Quarter 2009).

In a year-and-a-half, co-op price per square foot declined 19%. Condo median price declined 22% between Fourth Quarter 2008 and Fourth Quarter 2009 and price per square foot declined 17% between Fourth Quarter 2008 and Second Quarter 2009.

All of these metrics are now higher than they were at their 2009 troughs. Co-op Historical Sales Prices (Four Years)

For the complete: First Quarter Corcoran Report

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