In the fourth quarter, the number of high-end sales jumped ... fueled in large part by pending tax law changes. Sales over $5 million were up 33% from the fourth quarter of 2011, and sales over $10 million climbed 44%. Overall, there were 2,297 closings reported at the time of Halstead Property's report, 40% more than a year ago. Prices were also higher, as the average price rose 7% during this time to $1,486,692, while the median rose 6% to $836,000.
Co-ops were the biggest beneficiary of the pickup in luxury sales, which included a record setting $54 million co-op sale on the East Side. The average co-op price of $1,285,426 was 12% higher than during 2011’s fourth quarter. While three-bedroom and larger co-ops posted the biggest increase in average price (+34%), all other size categories also saw their average price increase from a year ago.
The average condo price of $1,806,329 was down slightly from the fourth quarter of 2011. While the average price fell 6% during this time for three-bedroom and larger condos, it did rise for all other size categories from a year ago.
As we expected, the pending expiration of the Bush tax cuts, combined with a new 3.8% surtax on investment income for high income sellers led to a surge in high-end closings in the fourth quarter. The local economy has remained strong, which along with record low interest rates has kept demand very strong. At the same time, the supply of available apartments in Manhattan has fallen 30% compared to last year. These factors will further enhance the strength of the local real estate market as we head into 2013.
The full version of the report is available on the Halstead website at the link below:
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