REBNY report: Coop market sets three new price records

Real Estate Weekly, August 14, 2002

Three new price records were set by Manhattan's cooperative market in the second quarter, according to the Real Estate Board's Quarterly Cooperative Sales Report. further evidence of coops' appreciation in a stagnant economy. The appeal of co-ops was also reflected by a 48% jump in the number of transfers from the figure reported twelve months before.

The new high median prices per room for studio! one-bedroom and two-bedroom units were $111,429 and $163,5000 respectively. The third record was set by West Side prewar co-op sales with a-median price per room of $153,333 which topped the previous high of $144,444 set in 2002's first quarter.

REBNY Executive Vice President Deborah B. Beck said, "The stock market's decline has made Manhattan home ownership an even more desirable investment. The incomparable rate of appreciation, low interest rates, tax benefits and the allure of living at the heart of the world's most important city all keep driving co-op prices higher."

Hall Willkie, Chairman of the Board's Residential Research Committee, noted that "A sharp increase in the number of co-op transfers over a twelve-month period is attributable, in part, to these apartments' superior appreciation as investments. We also see the added month it took to close on sales as an attempt by some buyers to take advantage of falling interest rates."

Other noteworthy examples of co-op appreciation were registered by reported transfers of three-bedroom as well as four-bedroom and large units with consideration of $255,952 and $359,375 respectively, both up from 2001's comparable period.

West Side postwar transfers appreciated 6% over 12 months to a median price per room of $135,000.

East Side prewar apartment values eased slightly to median price per room of $185,357; the comparable figure for 2001 was $188,333. East Side postwar units; however, rose two percent over the previous year to median price per room of $126,875.

Owning a Manhattan residence was an increasingly popular investment. The number of reported co-op -sales soared to 692, a 48% jump' as previously mentioned, from the 496 transfers noted twelve months earlier. Co-op transactions took a median of 5.7 months to close. This period is a month longer than transfers required a year before.

The full REBNY Cooperative Sales Report is available, only to participating brokerages. Co-op transactions are not a matter of public record. A summary of the survey is available to the public and journalists from REBNY's Research Department.