NYC Home Prices Outpace Rest of Country as Avg Prices Continue to Rise

Bucking the national trend of falling real estate prices, average sales prices for homes in New York City increased 12% in the second quarter of 2008 to $824,000 compared to the same period last year, according to a report released today by ResidentialNYC.com, the city’s premier real estate listing web site managed by the Real Estate Board of New York (REBNY).

The report, which tracks the sales prices of all homes (apartments and one-to-three-family dwellings) in New York City found that apartment prices citywide (condominiums and cooperatives) increased 21% to $1,007,000, compared to the second quarter of last year.

In Manhattan, average apartment sale prices (condominiums and cooperatives) increased 29% to $1,548,000. Brooklyn and Queens apartments retained their values in the second quarter with Brooklyn average sales prices rising 3% to $500,000 and Queens average apartment prices increasing 7% to $286,000.

“The second quarter report found that in the midst of falling property values nationwide, prices are still rising throughout New York City, particularly for apartments, despite some declines among single-family homes,” said Steven Spinola, REBNY President. “Manhattan average sales prices experienced substantial gains in the quarter and led to the citywide increases, but Brooklyn and Queens apartment average sales prices also saw increases, and are clearly retaining their value.”

Rising citywide average prices are attributed to the continuing price increases for Manhattan apartments, particularly condominiums. Throughout New York City, condominium average sales prices increased 29% to $1,316,000. In Manhattan, condominium average sales prices increased 33% to $1,834,000 compared to second quarter of last year.

The report found that although Manhattan condominium prices were bolstered by sales of high-end properties at buildings such as 15 Central Park West and The Plaza Hotel, condominium prices still climbed 9% throughout the borough without factoring in the most pricey units.

“Many industry watchers like to point out that, despite rising average condo sale prices in Manhattan and Brooklyn, the number of sales are down compared to 2007, which was a banner year,” added Mr. Spinola. “However, based on the condo sales in the first two quarters of 2008 in Manhattan and Brooklyn, we will easily surpass the number of condo sales recorded in these two boroughs in 2006, a year in which the housing market was robust. Furthermore, our report shows that even when removing the ultra high-end sales, the Manhattan condo market still had substantial price gains.”

About The Real Estate Board of New York

The Real Estate Board of New York is the city’s leading real estate trade association with 12,000 members. REBNY represents major commercial and residential property owners and builders, brokers and managers, banks, financial service companies, utilities, attorneys, architects, contractors and other individuals and institutions professionally interested in the City’s real estate. REBNY is involved in crucial municipal matters including tax policy, city planning and zoning, rental conditions, land use policy, building codes and legislation. In addition, REBNY publishes reports providing indicators of market prices for both the residential and commercial sectors.