Property values go up as NYers continue to invest in real estate

Real Estate Weekly, July 9, 2003

With New York City in a budget crisis and many residents feeling the effects of cutbacks and tax hikes, the Corcoran Group's May 2003 sales figures show that New Yorkers are continuing to show faith in the city by investing their money in the real estate market.

The average sale price per SF, one of the most certain determinants of a property's value, was $815 for condominiums, up from $783 in May 2002. There was also evidence of a continued resurgence for the high end market in May 2003 with a 17.4% increase in condominiums going to contract in the above $2 million range over the month of April 2003. Most interesting of this lot was a $5 million condominium on the Upper East Side. The property remained on the market for a scant five days and was sold at full asking price.

Additional highlights of the Corcoran Group's May 2003 report are as follows:

* The average sale price for cooperative apartments 'in May 2003 was $702,000, which is on par with the May 2002 figure of $704,000.

* High-end listings that went to contract in the month of May 2003 had an average sale price of $3.7 million and a negotiability factor of -6.8%, a decrease from the previous month's negotiability factor of 7.1%. This indicates that properties were selling closer to their asking price.

* Sales of townhouses on the Upper East Side and Downtown were brisk in May 2003 with a $12.5 million residential building located in SoHo leading the pack

* Buyers flocked to take advantage of the lowest mortgage interest rates in 45 years. Refinance activity as well as mortgage applications were at a record level.