New York’s Luxury Condominium Market Experiencing a Boom

Prices in many property markets in the US are going up, but it’s the New York’s Condo market that seems to be in the frontline. In short, New York’s luxury condo market is on the rise.

Indeed, there have been cases where buyers, in order to be the winning bidders, have had to shell out as much as $1 million over the asking price to snap up multi-million apartments moments after they have been put up for sale. For example, in 151 East 78th Street, properties were put out for sale in March and within 24 hours, 11 out of the 14 luxury apartments sent out to buyers were in contract prices starting at $10,000. And in the neighboring 60 East 86thstreet, at least 50% of the units were sold after sales opened in the same month.

New York’s luxury condo market is on the rise

According to Miller Samuel, an appraisal firm, the NY condo market has been quite strong for some time. The housing bust reached its all-high in the first quarter with prices of condos rising by 45%–representing an average of $7.4 million up from $5.1 million.   This is the largest year-over-year price increase in 6 years.

One of the chief causes of the boom in the condo market is a drop in inventory. In the first quarter of 2013, for example, there was a 73% drop in new apartment units in the market in Manhattan. Another reason is because of an increase in the number of buyers looking for condos to purchase due to the fact that rent prices have increased tremendously. Perhaps, this also reflects the number of families electing to live in New York (New York is the largest metropolitan area in the United States); thus, the velocity of sales has been terrific.

Morgan Glick

I write about New York and NYC real estate ventures, investments, tips, and community projects.