Real estate prices in Manhattan raised again with 18 percent, which is known to be the highest for the last 26 years.
According to cnbc.com, a square foot in Manhattan now costs $1,497 for the year's third quarter. Howard Lorber, chairman of Douglas Elliman, said "Everything is selling fast, I don't see how there could be a bubble. I think to some degree real estate follows the stock market, but people buy real estate to live in also, not just to invest in."
Douglas Elliman had released a report showing that an average price of a Manhattan apartment increased to $1,737,565 which equaled to 3 percent. The increase of the price per square foot in Manhattan is mostly caused by new condo and apartment constructions pushing the prices up. Lorber also said that new units are now usually "more than $3000 a square foot."
Bidding on few units left is also becoming rampant which made half of the sales higher than the listed price. Also, apartments are getting sold within 73 days after being put into the listings. It's been considered as the fastest sale ever.
Jonathan Miller, of Miller Samuel Real Estate Appraisers, "The speed of this market is what stands out to me."
According to nydailynews.com, the price spike in Manhattan's square foot are caused by great employment growth and a "robust city economy."
As the price changes for the last quarter of the year, a Manhattan apartment unit has now a median price of $998,000 which is 10 percent more than the median price last year for the same quarter.
Also, foreign investors are still continuing to flock in Manhattan and occupy its real estate properties. One example of strong foreign investors are the Chinese. Lorber said "When the Chinese stock market went down, when their real estate market went down, that didn't stop them from buying here. It actually made them more interested in getting their money out of there and buying in New York City."
Will you buy an apartment in Manhattan now that each square foot costs nearly $1,500? Sound it in the comments!
