Despite the nervous stock market this summer, sales in the Manhattan real estate market are positively stable. While the fear of a relapse in the global economic crisis is still very much a reality in the minds of many potential buyers, the numbers indicate that Manhattan homebuyers are not deterred. The latest trend shows that many Manhattan buyers are now taking advantage of the current market situation and favoring three- to four-bedroom apartments instead of the traditional smaller units. Sales in luxury Manhattan apartments are at their highest point since 2008 and apartments on the Upper West Side are closing at an average of $4.8 million or more.
In comparison to other parts of the world, the current state of the Manhattan real estate market is relatively steady and that might not be such a bad thing according to the New York Times. Given how volatile the real estate market was in the immediate aftermath of 2008, a slow and steady recovery could be a sign that things are finally returning to pre-recession standards. While rents have been weak in the past two years, the stagnantly low mortgage rates in 2011 have resulted in an increase of first-time buyers for both entry-level as well as high-end Manhattan apartments.
Surprisingly, the volume of sales in studios and one-bedroom apartments also rose from 1,184 to 1,500 units, or a 26.7 percent increase compared to the same quarter in 2010. Take for example, a 35-story, LEED certified “green” building located in Battery Park City where studios are priced at $700,000 and one-bedroom apartments start at $1 million. And for those who prefer a more artsy vibe, a new loft development in Tribeca hosts a number of apartments for sale in a building with a lushly landscaped rooftop terrace that overlooks a half-dozen parks and the Hudson River. Any New Yorkers who prefer the accessibility of the Upper West Side will appreciate a massive new post-war high-rise in Midtown West’s Clinton neighborhood, one of the most expensive and ambitious condominium conversions in Manhattan real estate history.