Manhattan home prices reached new heights in the first quarter of this year, with a record average price per square foot of $1,363.
Sales of condominiums and co-ops jumped 35 percent from the previous year to 3,307, according to a report released today by Douglas Elliman. The median price of Manhattan apartments increased by 19 percent to $972,428 in the first quarter — about 5 percent below the 2008 peak.
Deals at new developments, with their larger unit sizes and luxury buyers, set a record of $1,834 a square foot. Predictably, prices were also pushed up by tight inventory and high demand. The median price of a condominium shot up by 13.4 percent from the previous year to an unprecedented $1.355 million, the Elliman report said.
According to the Corcoran Group, 3,263 properties were sold in the first quarter of 2014, and the median price was $943,000, an 18 percent increase from the previous year. The average price per square foot hit $1,276, an annual gain of 20 percent.
Inventory dropped 17 percent to 5,466 units on the market at the end of March, according to Corcoran. This marks the 12th consecutive quarter of year-over-year decreases.
“We’re seeing basic Econ 101 coming into play,” Pamela Liebman, chief executive officer of Corcoran Group, told Bloomberg. “When you have this much demand and so little inventory, prices will have to rise. And they have.”
Here’s one data point: as of today, the average price per square foot of available new constructed Manhattan condos is $2,614.