What's Next For Manhattan Real Estate?

The first quarter of the year was a bad one for thenation's housing units.
national housing market. Nothing much new occurred,The fate of Bear Sterns, however, has combined
however it was an unabated continuation of lastwith the continuing negativity in the national market
year, which was one of the worst years for theto finally put a damper on the New York housing
national market on record. In that environment,market. Nonetheless, the Spring quarter is typically
however, the Manhattan real estate marketthe best quarter for the market, so once again, no
continued to do OK.one is really sure what the exact fate of home
Seemingly against all odds, the average price of Newvalues in the New York market will be. This very
York apartments improved almost twenty percentuncertainty has given pause to a number of potential
from the same time last year. The increase in pricesbuyers and sellers.
was largely driven by the luxury market, which sawMost analysts expect prices to decline somewhat,
several new high end buildings go on the market.especially among sellers who have had their home on
Underlying the effect that the strong numbers fromthe market for more than a month. Activity is
the luxury sector had on the market as a whole,expected to decline from what it was a year ago,
rents actually declined in the first quarter, even asthough quarter-over-quarter numbers won't seem
the average price of New York City apartmentsquite as bad.
increased. There were a some signs of a newRents are expected to continue to decline, though
weakness in the quarterly numbers - inventory, fornot at as fast a pace as they did in the first quarter.
example, increased substantially - however, theAll in all, the second quarter numbers for the
unexpected large increase in the average priceManhattan real estate market will be truly fascinating.
buoyed confidence in the market for yet anotherUntil the quarter is finished, and the data is released,
quarter. New York apartments, it seemed, lived in ahowever, a sense of uncertainty will place a drag on
different economic universe than the rest of thethe market.