Rally Caps: Manhattan Luxury Apartment Sales Way, Way Up In Last Quarter

Luxury apartment sales are way up over last quarterIt's big news, of course, but the ongoing recovery in the market for Manhattan luxury condos is not exactly news at this point. But what started as a series of anecdotal incidences -- near-ubiquitous price chops replaced by price hikes at buildings like The Apthorp; the consumer confidence reflected in the preference for condos over co-ops; the continued strength of the international market -- has recently become something a lot more measurable. Between the increasingly rapid absorption rate of Manhattan condo listings and the booming market in high-end luxury condo listings, though, the bounce-back in Manhattan real estate is increasingly tough to miss. In that sense, the surge in Manhattan apartment sales in the second quarter reported by the Wall Street Journal's Josh Barbanel isn't exactly a surprise. But the scale of that surge, on the other hand, is both big news and good news. More and more, the recovery in NYC real estate is looking official. "A Wall Street Journal review of closed-sales filings with New York City Department of Finance shows that during the second quarter, which ends June 30, sales were running 80% above the pace reported a year ago," Barbanel writes."Analysts said there has likely been a modest recovery in prices as well. Major brokerage firms are scheduled to release quarterly market reports on price trends next week. Even so, some brokers have cautioned that a further recovery in the luxury market would depend on the pace of recovery for the U.S. economy." Of course, even with that 80% surge in sales, sales of Manhattan apartments are still 25% off their peak of mid-2007. The further we get from the middle of 2007, of course, the less sustainable and more frankly ridiculous those figures look. Also, the fact that the continued recovery in Manhattan real estate is pegged to the (much more sluggish) recovery of the United States economy should ensure that the recovery unfolds at a moderate -- read: not mid-2007 -- pace. But what seemed like it was happening is now pretty official, which likely means that you'll be seeing some new additions -- and plenty of activity -- in New Construction Manhattan's luxury condo listings.

NYC Daily Real Estate Blog

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