The Manhattan real estate market continues to go strong, and the last quarter report concludes that condos are taking the lead as the city’s most desirable properties.
Streeteasy’s Manhattan Condo Index highlights the notable increase in prices and sales of condos and reports that it hit an all-time high in Q4 2013. In comparison to 2012, the favorable condo activity has surged 12 percent—with an increase of one percent from October 2013 to November.
This market high has surpassed the previous high set in 2008 when we saw a 1.9 percent sales increase. The current increase since the market downturn in 2009 has now reached 22.9 percent, and The Wall Street Journal reports that the median condo price has increased to about $1.3 million.
A good portion of the uptick in condo sales comes from the abundance of well-received luxury new developments that have been taking Manhattan by storm. A number of these properties have recently entered into contract and set unprecedented sales records, with Extell Development’s highly anticipated One57 being one of them. The luxury skyscraper closed on more than 10 condos priced well over $45 million and two that exceeded $90 million in 2013.
Record-breaking prices coupled with the surge in inventory are sure to guarantee a strong upward trend for a while. According to the Manhattan Condo Index report, however, market predictions lean toward there not being enough supply to handle the demand because we are seeing property coming onto the market more quickly and staying for a shorter length of time.