| There hasn't been a year like 2007 for Manhattan | | | | 9%, compared to 3% for apartments in co-op |
| real estate in a long time. And there probably won't | | | | owned buildings. |
| be one like it for just as long. It saw a confluence of | | | | Much of this disparity in price increases came from |
| conflicting trends and market events that were | | | | the rise of the luxury condo. Many such new condos |
| enough to make the most brilliant economists' heads | | | | that came on to the market in 2007 for the first |
| swoon. While the national housing market had literally | | | | time are in new buildings designed by some of the |
| its most devestating year since the Great | | | | world's leading architects. |
| Depression, New York homes shot up in value to | | | | More anecdotally speaking, there is evidence of |
| levels that set new records in all sorts of categories. | | | | important changes taking place in some Manhattan |
| A new year end report Corcoran Group Real Estate | | | | neighborhoods. Districts that once offered little in the |
| has given us some of the most reliable data to date | | | | way of residential living have seen a good number of |
| on the 2007 market. | | | | new residential buildings spring up. These changes are |
| Perhaps most importantly, the value of NYC | | | | creating new living areas and neighborhoods, |
| apartments and homes in Manhattan rose 8%, to an | | | | somehow magically cramming more living space in |
| average of $1,105. Which, as we all understand at | | | | already crowded Manhattan. Examples include new |
| face value, is incredibly expensive. The average price | | | | living quarters in the Financial District and changes to |
| for an apartment on the island rose to an astounding | | | | the face of Hell's Kitchen. Similarly, Alphabet city |
| $1.395 million. That was a 12% increase over 2006 | | | | continued in 2007 to become a safer neighborhood |
| levels. | | | | that has become a new cultural hotspot. |
| Different pieces of evidence suggest the market | | | | All in all, 2007 was a great year for New York |
| was primarily a seller's market for most of 2007. | | | | apartments generally, especially Manhattan |
| All-cash deals, for instance were transacted with a | | | | apartments. Growth in value started to taper off |
| much greater regularity than the vast majority of US | | | | towards the end of the year, and there are signs of |
| cities. | | | | some trouble on the horizon, but even the most |
| One of the most important trends in the NYC real | | | | pessimistic predictions call for a drop in value of a |
| estate market picked up pace in 2007: A larger and | | | | considerably smaller scale than the gains that 2007 |
| larger share of New York apartments are being sold | | | | made. Furthermore, as much needed housing |
| as condominiums. Just about 55% of all completed | | | | developments occur throughout the island, |
| deals in Manhattan this year involved condos. Similarly, | | | | Manhattan's real estate market will only improve its |
| condos experienced an average price increase of | | | | ability to meet the high demand for its housing. |