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A new report from Condo-Sales.com shows a dramatic drop in the volume of Manhattan condo sales, but no drop in prices. There were only 386 condo sales in October compared to 433 sales in September — an 18% one-month drop and the lowest number of sales this year. This result follows a 30% drop in sales from August to September.
Sounds pretty gloomy, right?
Well, take heart in these points:
- The price of condos has continued to appreciate. According to the press release, “The average apartment price hit $1.43 million, a 7 percent increase over September and a 39 percent increase over October 2004. The average price per square foot for Manhattan condos rose to $1,091, which is 2 percent over September and 27 percent over October 2004.”
- The same thing happened last year and prices and sales volume boomed in the New Year. “We may be witnessing a gradual cooling in the residential sales market, but it is not clear that the trend will continue long-term,” said Yale Robbins, whose eponymous firm runs Condo-Sales.com. “Winter has been a season of enormous activity during the past several years and numbers may pop again in early 2006.”
- The most expensive apartments were the hardest hit. "One-bedroom apartments have continued to sell well, accounting for 37 percent of the total condominium sales in Manhattan," according to Condo-Sales.com. So, if you're ready to trade up to a bigger place, there is hope for you yet.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.