Manhattan housing market reached a record high in the fourth quarter, mainly because of the closings of luxury deals in new developments that were settled years ago. At that time, construction was just starting on many of the buildings.
The median price of all completed co-op and condo purchases in the borough jumped 17 percent to $1.15 million this year. According to a report Tuesday by appraiser Miller Samuel Inc. and brokerage Douglas Elliman Real Estate, this is the highest in 27 years of record-keeping. That tops the previous peak of $1.03 million, set in the second quarter of 2008, before the collapse of Lehman Brothers Holdings Inc. and financial crisis.
Fourth quarter of 2015 saw the recording of deals that were signed based on construction plans going as far back as three years ago, when developers focused on building with large and lavish units in an appeal to wealthy investors who weren’t reliant on credit. Now, with those projects completed, buyers have been taking ownership of their apartments.
According to the report, the number of newly built units that changed hands in the fourth quarter more than doubled from a year earlier.
What’s more, buyers seeking previously owned apartments in the fourth quarter found a limited supply of choices which helps pushing the resale median price to $960,000, according to Miller Samuel and Douglas Elliman. While that’s up 8.1 percent from a year earlier, it still hasn’t reached the $975,000 record for resale, also set in 2008.