Prices and sales volume for Manhattan real estate were unchanged in the second quarter of 2012, largely due to the continued decline in inventory, low interest rates and increased foreign investment.
Purchases of condominiums and co-ops totaled 2,647 in the three months through June, little changed from a year earlier, according to a report today by New York appraiser Miller Samuel Inc. and brokerage Prudential Douglas Elliman Real Estate. The median price declined 2.5 percent to $829,000.
Manhattan apartment prices stayed more or less flat during the first two quarters of 2012, averaging $1.45 million in the second quarter, according to the Brown Harris Stevens market report, which is slightly less the first quarter average of $1.48 million.
This is still slightly better than the second quarter of 2011, which had an average of $1.43 million.
Overall, co-ops and condos prices stayed fairly consistent compared to last quarter and last year, with co-op prices at $1.19 million (down one percent from last year), according to Brown Harris Stevens, and condo prices at $1.81 million, up 8 percent from last year (albeit less than last quarter's average of $1.88 million).
"The stability of prices in the past few quarters has instilled confidence in a lot of people," said James M. Gricar, general sales manager at Halstead Property. "Rates are quite low and the rental market is quite high. Conditions are good. That has led to a very stable, healthy - and for brokers, optimistic - market."
Over all, inventory has declined to 14,254 apartments, a 5.9 percent decrease from the same period last year, according to StreetEasy.com. If that trend continues along with rising demand, prices could move higher. The number of price cuts was down by 19.8 percent, compared with the same period last year, according to StreetEasy.com.
