(Source: PRNewswire)
NEW YORK, Oct. 3 /PRNewswire/ -- The Third Quarter 2008 Prudential Douglas Elliman Manhattan Market Report reveals the surge of new development closings has eased and the gains in all price indicators was more modest and less subject to skew this quarter. One of this report's new features this quarter is an additional analysis of new development versus re-sale. Market share of new development has slipped over the past year from 32.5% of all sales to 30.1%. The average price per square foot of all new development was $1,320 this quarter, down 1.5% from the prior year quarter while re-sale price per square foot was up 4.3% to $1,142 per square foot, as higher end new development has been absorbed and higher end re-sale properties continued to sell.
"The events of the second half of September in the financial markets and Washington have not shown up in the market data for the quarter aside from the continuation of a lower level of sales activity compared to last year's record levels," said Jonathan Miller, President/CEO of Miller Samuel, the firm that prepared the report. "The market is currently experiencing a 'pause' after the bailout of Fannie Mae and Freddie Mac near the end of the quarter. The reduction in affordable mortgage products continues to hamper buyers, not only in New York, but in most housing markets across the country."
"We have faith in New York City real estate and believe that the bail-out plan will help all over, since it allows the bank to free up credit for consumers," said Dottie Herman, President and CEO of Prudential Douglas Elliman. "Prices in Manhattan remain stable, inventories are at normal levels and people still want to live, buy and raise their families here."
Highlights from the 3rd Quarter Prudential Douglas Elliman Manhattan Market Overview include:
-- Median sales price increased 7.4% to $928,263 over the prior year quarter result of $864,397. -- Price per square foot increased 4.3% to $1,193 over the prior year quarter result of $1,144. -- Average sales price increased 8.1% to $1,480,363 over the prior year quarter result of $1,369,486. -- The number of sales fell 24.1% this quarter to 2,654 units as compared to the 3,499 units sold in the prior year quarter. -- Listing inventory increased 34.6% to 7,003 units from the prior year quarter total of 5,204 units. -- Days on market was 134 days this quarter, 11 days longer than the 123 days on market average in the same period last year. -- Listing discount was 2.6%, up from 2% in the same period last year. Co-op Market -- Median sales price of a co-op this quarter was $688,000, up 2.9% from last year at this time.
