NY, NY (PRWEB) January 07, 2013
The NY real estate market has definitely improved over the years and this fourth quarter of 2012 further demonstrated success. With over 12,000 apartments sold in Manhattan that is about 3.5% more sold than the previous year; and this figure is likely to be higher as more information is gathered. Halstead's quarterly report showed that the average price apartments in the heart of New York City rose by 7% compared to the same time a year ago. In addition to being nearly 8% higher than the previous quarter, this figure which is approximately $1.487M is the highest it's been all of 2012! The median price of $836K is also an increase of 6% from last year.
According to Gregory Heym, Halstead's Chief Economist, there were about 2300 closings in the final quarter of 2012 which is 40% more than last year. The surge in closings was largely due to the uncertainty of tax laws and related issues as sellers rushed to close before the last day of the year, but it nevertheless caused the New York’s housing market to close with a bang. When compared to the same quarter of 2011, high end apartment sales over $5M increased 33% while an increase of 44% took place in the ultra luxury market for apartments over $10 million. The average price of a co-op increased from the previous quarter by 16% and 12% from the same time one year ago and at $1.285M it is the highest in all of 2012.
More apartments have been sold in Manhattan this year than in the last few years; thanks in part to the extremely low mortgage rates and a decrease in the unemployment rate. Furthermore, this final quarter saw the most sales than every fourth quarter in the last quarter century while having the lowest inventory for over a decade. The average time an apartment lingered on the market has also decreased by 7% from respective quarter the year before. There have been bidding wars due to the lack of inventory and over 96% of sellers received asking price which is also higher than last year. Read Halstead's full version of the report here.
This is all exciting news leading the entire brokerage community and economists to believe that this new year will be a competitive market due to the low inventory, but still a hot and improving one. This is why brokers recommend buyers to be a step ahead of competitors by getting prequalified. Sellers should always complete their due diligence and research the market. If this quarter is any indicator of what 2013 will bring, then there is definitely a lot to look forward to this new year.