New York City Market Update

By: Sharon Katzoff, VP Corcoran
Now that everyone is back and has jumped into the New Year, I wanted to update you on the state of the New York City market, should you, your friends. family members or clients be interested in buying or selling a property in New York

I am happy to inform you that Corcoran has released its Fourth Quarter Corcoran Report, our quarterly survey of residential real estate sales in Manhattan. This report compares data based on deals that closed in 4Q 2009 (October 1 through December 31) with that closed in the prior quarter and in the same quarter one year ago.

No doubt you have been following the economic news closely over the last year. If so, you have had your eyes on the real estate market as a key indicator for economic recovery.

This quarter there is reason to be hopeful that the significant devaluation we have tracked since the demise of Lehman Brothers is coming to an end. Although values are down significantly compared with 2008 (median prices are 15% lower than they were one year ago; average price per square foot is 17% lower), prices in the Fourth Quarter were essentially unchanged from the Third, suggesting that buyers and sellers reached price equilibrium after twelve months of downward pressure. This was particularly apparent in the comparison of quarter-over quarter resales: the median price for a re-sold apartment in the Fourth Quarter was $725,000, down 3% from the prior quarter, while the average price per square foot rose 1% to $936.

In the past few months, smart buyers have been taking advantage of reduced prices, low interest rates and tax credits. The Fourth Quarter was an extremely busy one for closings; when all deals are fully recorded in the public record, we anticipate this quarter will outpace the same quarter one year ago by 48% in number of sales. In addition, the total available inventory has decreased 36% since the peak in March, restricting choice and increasing competition.

The combination of shrinking inventory, stabilizing prices and increased sales are hopeful signs for the value of real property as we enter the New Year. I will be tracking them all closely as 2010 unfolds, and would welcome the opportunity to answer any questions you may have about the report, the market generally, or just how to go about buying or selling in New York.

I look forward to hearing from you and hopefully assisting you with your New York City Real Estate needs.

All the best for a prosperous and happy New Year!