Manhattan Home Prices Hit New Record Highs In The First Quarter Of 2008

The 1Q 2008 Manhattan Market Overview written by Jonathan Miller for Prudential Douglas Elliman is now available. The reports indicates the median price of a home in Manhattan rose to $945,276, that’s up 13.2% over the same time last year. While the number of sales in the first quarter of 2008 declined 34.3% from the first quarter of 2007, according to Miller Samuel Appraisers.

The elevated pace of sales from the past 5 quarters cools as the volatility in the financial markets begins to touch Manhattan. Based on activity in the first quarter it is likely that the record number of sales in 2007 will not be repeated in 2008. Sales in the current quarter declined to levels seen two years ago. The reduction of available credit, less favorable mortgage terms, the national economy moving towards a recession and the specter of additional layoffs in the financial services sector over the next two years has begun to restrain the demand for Manhattan residential real estate. Still, the regional economy is performing well, tourism and hotel occupancy rates are at or near record levels and the New York City government is financially well positioned for the next two years. The US dollar has set new lows against several currencies, which continues to bring new sources of demand, with specific emphasis on condo new development projects.