City co-op and condo sales record-breaking quarter

Real Estate Weekly, Nov 17, 2004

Manhattan condominium and cooperative sales activity has set a new record in the third quarter of 2004, according to two reports released today by the Real Estate Board of New York (REBNY). There were 3,145 total condominium and cooperatives sold, more than any quarter in the 11-year history of these reports.

REBNY's Condominium Report found that there was an 87% increase in the number of sales from a year ago, with the number of transactions jumping to 1,916. A companion report, REBNY's Cooperative Report, found that the number of cooperative sales increased 47% from last year to 1,229 sales.

"The number of condominium and cooperative sales in Manhattan continues to be record-setting despite modest increases in interest rates," said Steven Spinola, REBNY President. "In the 11-year history of these reports, we have never seen the number of sales in a single quarter rise this high. The market continues to build momentum."

Average sales prices and median prices for both condominiums and cooperatives also rose significantly this quarter. For condominiums, the average sales price was $997,000, an increase of 19% from a year ago. For cooperatives, the average sales price was $1,056,080, an increase of 17% from a year ago; the 3rd consecutive quarter that the average sale price was above $1 million.

The median sale prices, often regarded as the more accurate statistic for determining the market's strength, also saw double digit increases for condominiums and cooperatives. For condominiums, the median sales price rose 12% to $665,000. For cooperatives, the median sales price rose 13% to $660,000.

Downtown condominiums in particular saw big increases in the quarter. The median sales prices for downtown condos rose 22% to $683,000, while the average price downtown rose 21% to $983,000. Prewar condos downtown rose 32% to an average sales price of $1,609,000, while postwar units rose 30% to an average price of $754,000.

Cooperatives in downtown neighborhoods also saw increases, with the average sales price downtown rising 36% to $724,000.

REBNY attributes the downtown increases to the high number of residential conversions in Lower Manhattan and new luxury condo construction in the West Village.

The condominium report had the following additional findings:

Neighborhood

* The average sales price of $1,134,000 for the West Side represents an increase of 26% from a year ago.

* The average sales price for the Eastside rose 17% to $959,000.

Apartment Type

* Prewar units on the Eastside climbed 52% to an average sales price of $1,418,000. Prewar apartments on the Westside averaged $880,000, an increase of 35%.

* On the Westside prewar condominiums jumped 46% to a median sales price of $780,000.

The cooperative report had the following additional findings:

* Prewar apartments Downtown averaged $812,000, an increase of 38%. Prewar units Downtown median sales price increased 24% to $535,000.

* On the Westside postwar coops saw significant increases in average and median sales price; the average rose 40% to $695,000 while the median was up 29% to $549,000.

* The median sales price for a prewar two-bedroom apartment reached the one million dollar mark for the first time since this report has been compiled, an increase of 20%.

Price Per Room

* The median price per room increased 34% Downtown to $196,000.

* A new record median price per room was set for all bedroom categories 3 and fewer. Studio/one-bedroom rose 19% to $140,000, two-bedrooms rose 24% to $213,000 and three-bedrooms rose 22% to $296,000.

* Average price per room for a four bedroom unit jumped 68% to $537,000.