In August, Manhattan saw 713 condominium sales, a decrease of 11% from July. The volume also decreased by 8% at 1,261 million. The average sale price increased 4% at $1,768,817, and increased 13% from a year ago at $1,566,647. The average square footage saw a 3% increase from July at 1,211 square feet, with a minimal year change increase of 2% at 1,187. The average price per square foot saw a 2% decrease from July at $1,295, and a 5% year change increase at $1,232.
| |
Aug 2007 |
Jul 2008 |
Aug 2008 |
1 year
change |
1 month
change |
| Total Sales |
854 |
802 |
713 |
-17% |
+11% |
| Volume |
$1,338 mil |
$1,367 mil |
$1,261 mil |
-6% |
-8% |
| Avg Price |
$1,566,647 |
$1,704,759 |
$1,768,817 |
+13% |
+4% |
| Avg sf |
1,187 sf |
1,180 sf |
1,211 sf |
+2% |
+3% |
| Avg $/sf |
$1,232 |
$1,322 |
$1,295 |
+5% |
-2% |
As Manhattan prepares for the potential wide scale repercussions of Wall Street’s recent downturn and talk of federal bailouts, real estate professionals are preparing to digest yet another foul ingredient added to the stew. Industry professionals have abandoned the idea spouted earlier this year of Manhattan’s immunity to the market fallout.
With many developers unable to sell units at the anticipated pace, concessions are being made in lieu of economic tight-holds, such as significantly cutting offering prices and converting to rentals. Now, some speculate that most financial resolutions will function as temporary bandages over excessive financial bloodshed. Rentals rarely satisfy the construction loan received for development, making the next likely options to accept foreclosure or extend the life of the loan. Bankers are tending to opt for loan extensions rather than foreclosure, hoping the high-end market will balance out in the next few years.
However, in 2006 the economy was booming and the supply of credit was in overflow. The climate for residential construction indicated no signs of leading to the bittersweet projects that await sales today. Two years ago, developers submitted 659 condominium offering plans for approval, nearly triple the amount from 2002. This year, only 312 plans have been submitted to date. New development prices in Manhattan continue to increase, while resale prices are seeing a more humble decline, making it difficult to declare that a typical unit has greater value than it did six months prior.
Average apartment price in Aug 2008
The greatest sales in August occurred at The Avery, 100 Riverside Boulevard, with 44 units sold. At 90 William Street, Be @ William, 37 units sold. Selling 35 units were 20 Pine Street and 101 West 24th Street, Chelsea Stratus. One-bedrooms remained the popular seller with 247 sales in August; two-bedrooms saw 198 sales; three-bedrooms, 73; studios, 84; and, other bedroom sales, including units offering four or more bedrooms, saw 111 sales. South of 14th Street saw 214 sales; Midtown West (161); Upper West Side (131); Midtown East (124); Upper East Side (49); and, North of 96th Street (34).