Real estate prices in Manhattan hits a new record high for third quarter, a new report says.
In a surprising development, the real estate market in Manhattan has shown a strong performance especially in the third quarter with prices reaching $1,497 per square feet. In a report by CNBC, with global economy wallowing in uncertainty and the stock market still reeling from recent downturns, it is puzzling to many experts how prices of homes are skyrocketing. In addition to the volatile economy, there is also a short supply of available homes for sale which is fueling bidding wars among buyers. With many speculating that a real estate bubble is happening again, it looks like there is no stopping the current pricing trend, at least for Manhattan.
In the same CNBC post, the report from Douglas Elliman reveals that the selling price of Manhattan apartments on average increased by 3 percent in a year over year computation. It now stands at $1,737,565 and compared to 2014, sales increased by 10 percent and 37 percent for this year's second quarter.
Howard Lorber, chairman of Doulas 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."
According to New York Magazine, the real estate boom in Manhattan is not likely to end anytime soon particularly when it comes to non-luxury homes. The third quarter reports from various brokerage companies tell a story of contrast with more buyers coming in and fewer apartments to sell. Owing to the high demand, more than half of the 3,654 transactions recorded in the past three months were all paid in cash. The average asking price is now at $998,000 which is the highest since 2008.
